Basic Marketing Research 7th Edition by Gilbert Churchill,Tom Brown,Tracy Suter

Exercise 6

The manager of a local recreational center wanted to determine the average amount each customer spent on traveling to and from the center. On the basis of the findings, the manager was planning on raising the entrance fee. The manager noted that customers living near the center would spend almost nothing on traveling. On die other hand, customers living at die other side of town had to travel about 15 miles and spent about 30 cents (U.S.) per mile on average. The manager wanted to be 95% confident of die findings and did not want the error to exceed +/-10 cents. What sample size should the manager use to determine the average travel expenditure Show your calculations.