A Marketing Class Is Engaged in a Project to Estimate

question 101

Short Answer

A marketing class is engaged in a project to estimate the proportion of homes receiving both HBO and ShowTime cable service.The class plans to use a confidence coefficient of 0.95 and a maximum error of the estimate equal to 0.10.Determine the sample size for the class to use.

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Definitions:

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments, calculating an annual growth rate.

Profitability Index

A fiscal indicator that evaluates an investment's comparative profitability by calculating the ratio of the present value of future cash inflows to the upfront cost of the investment.

Present Value

The immediate worth of a future financial amount or sequences of cash flows, using a specified rate of return for calculation.

Invested Costs

Costs that have already been incurred for a project or investment.