Question

if a manufacturer conducted a survey among randomly selected target market households and wanted to be 95% confident that the difference between the sample estimate and the actual market share for it's new product was more than 8%, what sample size would be needed?

Answer 1

A manufacturer conducted a survey among ranomly selected target market households and wanted to be 95% confident that the difference between the sample estimate

Actual market share for its new product was more than 8%

No prior knowledge of p, so assume that

p = 0.50

c = 95%

= 0.95

E = 8%

= 1- 0.95

= 0.05

= 0.025

= Z 0.025

= 1.96

we know that margin of error

E =

n =

= 600.25

= 600

[nearest integer]

Required sample n = 600

=