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kolbaska11 [484]
3 years ago
11

QUESTION 3 Toyota provides an option of a sunroof and side airbag package for its Corolla model. This package costs $1400. Assum

e that prior to offering this option package, Toyota wants to determine the percentage of Corolla buyers who would pay $1400 extra for the sunroof and side airbags. How many Corolla buyers must be surveyed if we want to be 95% confident that the sample percentage is within four percentage points of the true percent all Corolla buyers
Mathematics
1 answer:
Orlov [11]3 years ago
6 0

Answer:

n=601

Step-by-step explanation:

Formula used:

n=z(\frac{\alpha }{2})^2\frac{p(1-p) }{E^2}

Solution:

n=z(\frac{\alpha }{2})^2\frac{p(1-p) }{E^2}

Where,

\frac{\alpha }{2}=0.025

As there is no previous estimate for p

Then, p=0.5

Here on using the table

z(\frac{\alpha }{2}) =1.959963985

Also,

E=0.04

p=0.5

Thus,

n=600.2279407

On approximating the value,

n=601

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