Question 571054: You are asked by the owner of the Starshine Motel to develop a customer satisfaction survey to determine the percentage of customers who are dissatisfied with service. In the past year, 20,000 customers were serviced. She desires a 95% level of confidence with an allowable statistical error of +/- 0.02. From past estimates, the manager believes that about 4% of customers have expressed dissatisfaction. What sample size should you use for this survey?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! You are asked by the owner of the Starshine Motel to develop a customer satisfaction survey to determine the percentage of customers who are dissatisfied with service. In the past year, 20,000 customers were serviced. She desires a 95% level of confidence with an allowable statistical error of +/- 0.02. From past estimates, the manager believes that about 4% of customers have expressed dissatisfaction. What sample size should you use for this survey?
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n = [Z/E]^2*p*q
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n = [1.96/0.02]^2*0.04*0.96 = 369
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Cheers,
Stan H.
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