According to a? study, 63?% of financial institutions use churn rate? (attrition) to gauge the effectiveness...

According to a? study, 63?% of financial institutions use churn rate? (attrition) to gauge the effectiveness of their marketing efforts. Complete parts? (a) and? (b).

a. If you conduct a? follow-up study to estimate the population proportion of financial institutions that use churn rate to gauge the effectiveness of their marketing? efforts, would you use a ? of 0.63 or 0.50 in the sample size? formula?

b. Using your answer to? (a), find the sample size necessary to? estimate, with 99?% ?confidence, the population proportion to within plus or minus ±0.04.

The sample size needed is

Expert Solution

Sol:

It is given that 63?% of financial institutions use churn rate? (attrition) to gauge the effectiveness of their marketing efforts.

A:

For estimating the population proportion of the financial institutions that use churn rate to gauge the effectiveness of their marketing efforts the value of ? is equal to 0.63 in the sample size formula.

B:

For 99% Confidence Interval , Z = 2.576

Here, ? = 0.63 and e = 0.04

Therefore, a sample of size = 955 is needed to estimate the population proportion of financial institutions that use churn rate to gauge the effectiveness of their marketing efforts to within ±0.04 with 99% Confidence.

orchestra answered 2 years ago

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