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Problem:

Suppose an airline decides to conduct a survey of its customers to determine their opinion of a proposed one-bag limit. The plan calls for a random sample of customers on different flights to be given a short written survey to complete during the flight.

One key question on the survey will be: "Do you approve of limiting the number of carry-on bags to a maximum of one bag?" Airline managers expect that only about 15% will say "yes."

Required:

Based on this assumption, what size sample should the airline take if it wants to develop a 95% confidence interval estimate for the population proportion who will say "yes" with a margin of error of ±0.02? Explain the solution in detail.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91166357

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