City Products is a mobile phone retailer in London. It wants to test an offer to its own database…

City Products is a mobile phone retailer in London. It wants
to test an offer to its own database using direct mail, and has calculated its
break-even response rate to be 3.0 per cent. Previous results indicate that
this test result should be about 3.5 per cent. Given that it wants to ensure
any roll-out is in profit, what size sample should the company use for the
test?

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