Question

he concept of price-club shopping, which was introduced in the united states is now popular in canada. a marketing analyst, who is doing research in this area, wants to estimate the percentage of shoppers who would favor this type of shopping.

1. She presents the results of the computation in part 1 to the marketing dept head, who thinks the sample size is too large. she suggests that survey results in the past have suggested that 85% of the shoppers would prefer this type of shopping. IF the survey costs $15 per person, how much money can be saved by using the 85% estimate to determine the sample size?

3. A sample of 325 shoppers revealed that 260 were in favor of this type of shopping. Construct a 90% confidence interval for the percentage of these shoppers. Include statement.

Answer 1