BUS 461 Week 3 Assignment

WK 3 Assignment

BUS 461

Problem 8-33. You have been assigned to determine whether more people prefer Coke or Pepsi. Assume that roughly half the population prefers Coke and half prefers Pepsi. How large a sample do you need to take to ensure that you can estimate, with 95% confidence, the proportion of people preferring Coke within 2% of the actual value?

Our main goal for this assignment is to carefully choose the sample size that will allow the examiner to build a case whether people have a preference between Coke or Pepsi. We know that a sample is “a subset of the population, often randomly chosen and preferably representative of the population as a whole. Sample size is designed to produce a recommended level accuracy,” (Albright & Winston, 2017).

 Sample Size for Variance of Proportions Confidence Level 95% Half-Length Interval .02 Sample Size (A) 0.5000 Sample Size (B) 0.5000 Test Sample Size 4802

Using the formula for estimating the difference between proportions, we can conclude that based on the results of the formula, 4802 selected personnel are required for testing. :

Sample size: n

Coke: a = 0.5

Pepsi: b = 0.5

Half Length Interval: 0.02

n = (z-multiple/b) ^2 [a (1-a) + b (1-b)]

n = (98)^2 [0.5 (1-0.5) + 0.5 (1-0.5)]

n = (98)^2 (.25+.25)

n = 9604 x 0.5

n = 4802

Reference:

Albright, S. C, & Winston, W. L. (2017). Business analytics: Data analysis and decision making (6th ed.). Retrieved from https://redshelf.com/

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