A Popeyes store manager wants a 90% confidence interval to estimate the proportion of customers who have tried their new chicken sandwich. She is also seeking a half-length of no more than 0.05 (B = 0.05). How many customers does the manager need to survey? (NOTE: Express the MULTIPLIER to three decimal places for your calculation.)
A 99
B 269
C 270
D 271
Solution :
Given that,
= 0.5 (assume 0.5)
1 - = 1 - 0.5 = 0.5
margin of error = E = 0.05
At 90% confidence level z
= 1 - 90%
= 1 - 0.90 =0.10
/2
= 0.05
Z/2
= Z0.05 = 1.645 ( Using z table)
Sample size = n = (Z/2 / E)2 * * (1 - )
= (1.645 / 0.05)2 * 0.5 * 0.5
=271
Sample size = 271
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