Question: A market research consultant hired by the Pepsi- Cola co. is interested in determining the proportion of consumers who favor Pepsi-Cola over Coke Classic in a particular urban location. A frame of customers from the market under investigation is provided in the attachment.

a) What sample size would be required for the market research consultant to be approximately 95% sure that her estimate of the proportion of consumers who favor Pepsi cola is in the given urban location is within 0.290 of the true proportion? Assume that her best estimate of the population proportion parameter p is 0.45 (Hint: The required sample size formula in this case is given by n=4p(1-p)/B2, where p is the population proportion parameter and B is the specified error, in this case 0.20)

b) How does the answer to a change if the market research consultant wants her estimate to be within 0.15 of the actual population proportion? Explain the difference in your answers to parts a and b.