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A soft drink company has a new recipe for one of its products, and it would like to know if a majority of consumers of its drinks prefer the new recipe over the old recipe. The company plans to ask a representative sample of the population to taste both drinks. The company will then measure the percent that prefer the new recipe.
a. What would be the approximate margin of error for this percent if the company asks 600 consumers?
b. How many consumers would need to be in the sample to provide a margin of error of about 5%?
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