We Want to Estimate with 99 Percent Confidence the Percentage

question 131

Multiple Choice

We want to estimate with 99 percent confidence the percentage of buyers of cars who are under 30 years of age.A margin of error of 5 percentage points is desired.What sample size is needed? In an earlier sample we found a 99 percent confidence interval of buyers under 30 years of age to be [.18 .27].

• A)104
• B)664
• C)392
• D)523

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Definitions:

Complements

Complements are goods or services that are used together, so that the consumption or use of one increases the demand for the other.

Durable Good

A type of good that does not quickly wear out and is capable of being used for a period of time, often years, before needing replacement.

Automobile

A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor.

Substitute Good

A product or service that consumers see as a viable alternative to another product, where an increase in the price of one leads to an increase in demand for the other.