In order to regulate whether the average cost they are willing to pay must be at least $47.50
I need to determine if a new product is worth marketing. At least 85 percent of the public must express interest in the product as well as for those that do the average cost they are willing to pay must be at least $47.50.
I survey 50 potential consumers regarding their interest in the product, 34 express an interest in purchasing it. The maximum price all would be willing to pay is shown below. How must I respond to the request for information? Must the product be marketed? How large must the sample be if I want to maintain a 95 percent level of confidence as well as suffer a maximum error of $2.00 in my estimate of the highest price consumers are willing to pay?
|
Maximum Price
|
|
47
|
62
|
46
|
|
43
|
53
|
34
|
|
54
|
45
|
35
|
|
65
|
36
|
32
|
|
54
|
45
|
31
|
|
34
|
36
|
25
|
|
38
|
37
|
56
|
|
35
|
43
|
65
|
|
43
|
48
|
54
|
|
37
|
46
|
65
|
|
54
|
42
|
47
|
|
63
|
|
|