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?

Evaluate the implications of changes in risk aversion on insurance markets and premiums.

Distinguish between the demanders and suppliers of insurance based on their attitudes towards risk.

Recognize the role of signaling, screening, and reputation in mitigating problems associated with asymmetric information.

Identify how warranties and insurance policies can affect consumer utility and economic outcomes.

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Definitions:

Tobacco Use

The act of smoking or using tobacco products, which can lead to a range of health issues, including cancer and heart disease.

Cigarette Smoking

The act of inhaling and exhaling the smoke of tobacco or a drug, which is known to have harmful health effects, including cancer and cardiovascular diseases.

Theory of Planned Behavior (TPB)

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place.

Diabetic Patient

An individual who has diabetes, a chronic condition characterized by high levels of sugar (glucose) in the blood.