The manufacturer of eComputers an economypriced computer rec

The manufacturer of eComputers, an economy-priced computer, recently completed the design for a new laptop model. eComputer’s top management would like some assistance in pricing the new laptop. Two market research firms were contacted and asked to prepare a pricing strategy. Marketing-Gets-Results tested the new eComputers laptop with 50 randomly selected consumers who indicated they plan to purchase a laptop within the next year. The second marketing research firm, called Marketing-Reaps-Profits, test-marketed the new eComputers laptop with 200 current laptop owners. Which of the marketing research companies\' test results will be more useful? Larger samples provide narrower estimates of a population mean. So the company with 200 sampled customers can provide more precise estimates. Larger samples provide narrower estimates of a population mean. So the company with 50 sampled customers can provide more precise estimates. Smaller samples provide narrower estimates of a p

Solution

As sample size increases, sample statistics becomes closer to population parameters. And since sample size comes in denominator when we calcuate confidence intervals for population mean, so as the sample size increases, confidence interval becomes narrower and gives more precise estimates. So option: \"Larger samples provide narrower estimates of a population mean. So the company with 200 sampled customers can provide more precise estimates.\" is correct