Social Media: Brand Recommendations How often do we trust a brand recommended online?

Let p represent the proportion of the time a consumer trusts a brand that showed up on their social media feed.

(a) If you have no preliminary estimate for p, how many participants should you include in a random sample to be 80% sure that the point estimate pˆ will be within a distance of 0.03 from p?

(b) Suppose that a report stated that 70% of consumers trust a brand recommended on their social media feed. Using this estimate for p, answer part (a).

AppendixLO1