SOLUTION: A financial institution wishes to estimate the mean balances owed by its credit card customers. The population standard deviation is estimate to be $ 300. If a 98 percent confide

Question 219171: A financial institution wishes to estimate the mean balances owed by its credit card customers. The population standard deviation is estimate to be $ 300. If a 98 percent confidence inveral is used and an interval of =+ 75 is desired, how many cardholders should be sampled?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A financial institution wishes to estimate the mean balances owed by its credit card customers. The population standard deviation is estimate to be $ 300. If a 98 percent confidence inveral is used and an interval of =+ 75 is desired, how many cardholders should be sampled?
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invNorm(0.01) = 2.326
n = [2.326*300/75]^2
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n = 9.304^2
---
n = 86.56
Rounding up:
n = 87 (desired sample size)
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Cheers,
Stan H.
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