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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
31
25
38
37
56
48
42
63
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