The highest price consumers are willing to pay

Assignment Help Basic Statistics

Reference no: EM1317997

In order to find out whether the average cost they are willing to pay must be at least $47.50

I want to establish if a new product is worth marketing. At least 85 percent of the public must express interest in the product and 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 each would be willing to pay is shown below. How should I respond to the request for information? Should the product be marketed? How large should the sample be if I want to maintain a 95 percent level of confidence and 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

Reference no: EM1317997

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