A Large Bank in a Metropolitan Area Has a Large

question 53

Short Answer

A large bank in a metropolitan area has a large number of secured loans on apartment facilities throughout the area.Local economic indicators suggest the percentage of vacant apartments ranges from 7% to 10%.Concerned about the borrowers' ability to meet loan obligations on time the bank decides to sample from the apartments used to secure loans.The officer responsible for the sample decides to allow a maximum error of the estimate of 0.01 with 99 percent confidence.The officer wishes to take a sample large enough to cover all proportions within the estimated vacancy range.Compute the sample size needed for this study.

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Definitions:

Wealthy Industrialists

Individuals who have amassed significant wealth and influence through the operation and ownership of large-scale industries, often during the Industrial Revolution.

Berea College

A liberal arts college located in Kentucky, notable for being the first coeducational and racially integrated college in the Southern U.S.

Racial Integration

The process of ending racial segregation, involving the bringing together of races in a harmonious, unified manner.

Supreme Court

The highest judicial body in a country, typically having the ultimate authority over all other courts and adjudicating in the final appeal cases.