The Banking Industry Has Suffered in Recent Years Because of a High

question 95

Multiple Choice

The banking industry has suffered in recent years because of a high default rate on energy-related loans.The standard deviation is $10,000.How large a sample must you take from banking records to be 98% confident that your estimate for the amount of these defaults is within $1000 of the true mean loan amount?

• A) 567
• B) 233
• C) 240
• D) 543
• E) 890

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