Although airline schedules and cost are important factors for business travelers when choosing an airline carrier, a USA today survey found that business travelers list an air-line’s frequent flyer program as the most important factor. From a sample of n 5 1993 business travelers who responded to the survey, 618 listed a frequent flyer program as the most important factor.
a. What is the point estimate of the proportion of the population of business travelers who believe a frequent flyer program is the most important factor when choosing an airline carrier?
b. Develop a 95% confidence interval estimate of the population proportion.
c. How large a sample would be required to report the margin of error of .01 at 95% confidence? Would you recommend that USA today attempt to provide this degree of precision? Why or why not?