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You are the operations manager for an airline and you are considering a higher fare level for passengers in aisle seats. How many randomly selected air passengers must you​ survey? Assume that you want to be 90​% confident that the sample percentage is within 5.5 percentage points of the true population percentage. Assume that nothing is known about the percentage of passengers who prefer aisle seats.

Respuesta :

Solution: We are given:

Margin of error [tex]E=0.055[/tex]

Confidence level[tex]=90\%[/tex]

[tex]\therefore \alpha =100\%-90\%=10\%[/tex] or [tex]0.1[/tex]

Since we are not given the proportion of passengers who prefer aisle seats, therefore we assume it to be [tex]0.5[/tex]

[tex]\therefore p=0.5[/tex]

Now, the formula for finding the sample size is:

[tex]n=p(1-p)\left( \frac{z_{\frac{0.1} {2}} }{E} \right)^{2}[/tex]

Where:

[tex]z_{\frac{0.1}{2}}=1.645[/tex] is the critical value at 0.1 significance level

[tex]\therefore n=0.5(1-0.5) \left(\frac{1.645}{0.055}\right)^{2}[/tex]

                      [tex]=224[/tex] rounded to nearest integer

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