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:

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of periods to identify trends and growth patterns.

Horizontal Analysis

A financial analysis technique that evaluates trends over time by comparing line items in financial statements across successive periods.

Revenue Information

Data regarding the income generated from the sales of goods or services before any expenses are subtracted.

Accounting System

A set of processes and tools used by a business to track its financial information, including transactions, accounts payable, and receivable.