Business Finance Homework Help

Confidence Intervals

In this week’s reading, we discussed different types of samples, their distributions, sampling errors, probabilities, and confidence intervals. Using Excel or StatTools, complete the following Problem. This is similar to Problem 33 in Chapter 8 on page 351.

Problem – You have been assigned to determine whether more people prefer Coke or Pepsi. Assume that roughly half the population prefers Coke and half prefers Pepsi. How large a sample do you need to take to ensure that you can estimate, with 90% confidence, the proportion of people preferring Coke to within 5% of the actual value? Show all of your work.