A Car Dealership Wants to Estimate the Percentage of Customers

question 71

Short Answer

A car dealership wants to estimate the percentage of customers who are satisfied with their customer service. Given that the car dealership 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 99% confidence interval?

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Definitions:

Investment Project

An undertaking requiring capital investments, aimed at generating future benefits, such as profits or community advantages.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used to evaluate the profitability of an investment.

Investment Project

A project that involves allocating resources like capital, manpower, and time with the expectation of generating future returns over the project’s lifespan.

Internal Rate Of Return

A financial metric used to evaluate the profitability of an investment, representing the interest rate where the net present value of all cash flows is zero.