A marketing firm is asked to estimate the percent of existing customers who would purchase a "digital upgrade" to their basic cable TV service.The firm wants 99 percent confidence and an error of ± 5 percent.What is the required sample size (to the next higher integer)?
A) 664
B) 625
C) 801
D) 957

Question

Quizplus · Accepted Answer

The sample size is calculated using the formula: n = (Z^2 * p * q) / e^2, where Z is the z-score for the desired confidence level, p is the estimated proportion of customers who would purchase the upgrade, q is the complement of p (1 - p), and e is the desired margin of error. Plugging in the given values, we get: n = (2.576^2 * 0.5 * 0.5) / 0.05^2 = 663.96. Rounding up to the next higher integer, the required sample size is 664.

A Marketing Firm Is Asked to Estimate the Percent of Existing