A Bank Wishes to Estimate the Mean Balances Owed by Customers

question 115

Multiple Choice

A bank wishes to estimate the mean balances owed by customers holding MasterCard. The population standard deviation is estimated to be $300. If a 98 percent confidence interval is used and an interval of $75 is desired, how many cardholders should be sampled?

• A) 44
• B) 212
• C) 629
• D) 87
• E) None of the choices are correct

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Definitions:

Saving Rate

The proportion of disposable income that individuals or households save rather than spend on consumption.

U.S. Economy

The economic system of the United States, characterized by a mixed economy that includes private enterprise alongside limited government involvement.

International Trade

The exchange of goods, services, and capital across international borders or territories.