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A new service is being piloted. At least 75% of the potential customers must express some desire for the service. For those that exhibit an interest, the average cost they are willing to pay for the service must be at least $49.00. You must be 95% certain of your findings.
50 potential customers were surveyed. Of the 50 potential customers surveyed, 33 expressed an interest in purchasing the product. The maximum price they are willing to pay is shown below:
Maximum prices:
47 62 46 42 53 30 54 45 35 65 36 32 54 45 31 36 35 28 38 37 56 35 43 65 43 48 54 37 46 65 54 41 47
1. Should the product be marketed? Why or why not?
2. How large should the sample be if you want to maintain a 95% confidence and suffer a maximum error of $2.00 in your estimate of the highest price consumers are willing to pay?
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