You are the operations manager for an airline and you are considering a higher fare level for passengers in aisle seats. How many randomly selected air passengers must you​ survey? Assume that a prior survey suggests that about 22​% of air passengers prefer an aisle seat. Assume that you want to be 98% confident that the sample percentage is within 5.1 percentage points of the true population percentage.

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Answer:

358 randomly selected air passengers must be surveyed.

Step-by-step explanation:

In a sample with a number n of people surveyed with a probability of a success of [tex]\pi[/tex], and a confidence level of [tex]1-\alpha[/tex], we have the following confidence interval of proportions.

[tex]\pi \pm z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

In which

z is the zscore that has a pvalue of [tex]1 - \frac{\alpha}{2}[/tex].

The margin of error is given by:

[tex]M = z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

98% confidence level

So [tex]\alpha = 0.02[/tex], z is the value of Z that has a pvalue of [tex]1 - \frac{0.02}{2} = 0.99[/tex], so [tex]Z = 2.327[/tex].

Assume that a prior survey suggests that about 22​% of air passengers prefer an aisle seat.

This means that [tex]\pi = 0.22[/tex]

How many randomly selected air passengers must you​ survey?

We need a sample of n, and n is found for which [tex]M = 0.051[/tex]. So

[tex]M = z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

[tex]0.051 = 2.327\sqrt{\frac{0.22*0.78}{n}}[/tex]

[tex]0.051\sqrt{n} = 2.327\sqrt{0.22*0.78}[/tex]

[tex]\sqrt{n} = \frac{2.327\sqrt{0.22*0.78}}{0.051}[/tex]

[tex](\sqrt{n})^2 = (\frac{2.327\sqrt{0.22*0.78}}{0.051})^2[/tex]

[tex]n = 357.2[/tex]

Rounding up

358 randomly selected air passengers must be surveyed.