There were 904 new Subway Restaurants franchises opened during 2002.
Suppose that Subway wished to survey a simple random sample of the new
franchisees to find out what percentage of them were totally pleased with their
relationship with the company.
(1) If Subway wanted to have 90% confidence in being with 3 percentage
points of the population percentage who are pleased, how many of the new
franchisees would have to be included in the sample? (7%)
(2) Suppose Subway has carried out the study, using the sample size
determined in part (1), and 27.5% of the franchisees say they are pleased
with their relationship with Subway. Construct and interpret the 95%
confidence interval for the population percentage. (8%)
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