A Budget Airline Wants to Estimate What Proportion of Customers

question 32

Short Answer

A budget airline wants to estimate what proportion of customers would pay $10 for in-flight wireless access. Given that the airline has no prior knowledge of the proportion, how many customers would it have to sample to ensure a margin of error of no more than 5% for a 95% confidence interval?

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Definitions:

Logical Argument

A reasoned, logical way of asserting the truth of a statement, theory, or conclusion.

Analyze

The process of examining components or data in detail in order to understand it better or draw conclusions.

Persuade

To convince someone to do something or to believe in something through reasoning or argument.

Time Constraints

Limitations or deadlines that restrict the amount of time available to complete a task or project.