One of your employees has suggested that your company develop a new product. You

Question

One of your employees has suggested that your company develop a new product. You decide to take a random sample of your customers and ask whether or not there is interest in the new product. The response is on a 1 to 5 scale with 1 indicating "definitely would not purchase"; 2, "probably would not purchase"; 3, "not sure"; 4, "probably would purchase"; and 5, "definitely would purchase." For an initial analysis, you will record the responses 1, 2, and 3 as "No" and 4 and 5 as "Yes." What sample size would you use if you wanted the 95% margin of error to be 0.25 or less? (Round your answer up to the next whole number.)

___ Participants

Explanation / Answer

Compute Sample Size ( n ) = n=(Z/E)^2*p*(1-p)

Z a/2 at 0.05 is = 1.96

Sample Proportion = 0.5

ME = 0.25

n = ( 1.96 / 0.25 )^2 * 0.5*0.5

= 15.3664 ~ 16

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