In an article in the Journal of Marketing, Bayus studied the differences between "early replacement buyers" and "late replacementbuyers" in making consumer durable good replacement purchases. Early replacement buyers are consumers who replace a productduring the early part of its lifetime, while late replacement buyers make replacement purchases late in the product's lifetime. Inparticular, Bayus studied automobile replacement purchases. Consumers who traded in cars with ages of zero to three years andmileages of no more than 35,000 miles were classified as early replacement buyers. Consumers who traded in cars with ages ofseven or more years and mileages of more than 73,000 miles were classified as late replacement buyers. Bayus compared the twogroups of buyers with respect to demographic variables such as income, education, age, and so forth. He also compared the twogroups with respect to the amount of search activity in the replacement purchase process. Variables compared included the number ofdealers visited, the time spent gathering information, and the time spent visiting dealers. Regard the sample of 500 late replacementbuyers for which o = .77. How large a sample of late replacement buyers is needed to make us (Round up your answers to the nextwhole number.):(a) 99 percent confident that ¤ , the sample mean number of dealers visited, is within a margin of error of .04 of u, the populationmean number of dealers visited?nbuyers(b) 99.73 percent confident that a is within a margin of error of .05 of u?buyers

The sample size can be calculated as: Here, z = desired confidence level E = The allowable margin…

n an article in the Journal of Marketing, Bayus studied the differences between "early replacement buyers" and "late replaceme uyers" in making consumer durable good replacement purchases. Early replacement buyers are consumers who replace a pro luring the early part of its lifetime, while late replacement buyers make replacement purchases late in the product's lifetime. In articular, Bayus studied automobile replacement purchases. Consumers who traded in cars with ages of zero to three years ar hileages of no more than 35,000 miles were classified as early replacement buyers. Consumers who traded in cars with ages even or more years and mileages of more than 73,000 miles were classified as late replacement buyers. Bayus compared the roups of buyers with respect to demographic variables such as income, education, age, and so forth. He also compared the tv roups with respect to the amount of search activity in the replacement purchase process. Variables compared included the nu lealers visited, the time spent gathering information, and the time spent visiting dealers. Regard the sample of 500 late replace uyers for which o = .77. How large a sample of late replacement buyers is needed to make us (Round up your answers to the vhole number.): a) 99 percent confident that a , the sample mean number of dealers visited, is within a margin of error of .04 of u, the populatie hean number of dealers visited? buyers

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.6: Summarizing Categorical Data

Problem 27PPS