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

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Expert Solution

Sol:

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

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.

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 1 year ago

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