A survey of 300 U.S. online shoppers was conducted. In responseto the question of what would influence the shopper to spend moremoney online in 2012, 18% said free shipping, 13% said offeringdiscounts while shopping, and 9% said product reviews. (Dataextracted from “2012 Consumer Shopping Trends and Insights,”Steelhouse, Inc., 2012.)
a) Construct 95% confidence intervals of the populationproportion of online shoppers who would be influenced to spend moremoney online in 2012 for “Free shipping”, “Discounts offered whileshopping”, “Product reviews” respectively.
b) You have been asked to update the results of this study.Determine the sample size necessary to estimate the populationproportions in part (a) within ±0.02, with 95% confidence.