The Manager of University Credit Union (UCU) Is Concerned About

question 27

Short Answer

The manager of University Credit Union (UCU) is concerned about checking account transaction discrepancies. Customers are bringing transaction errors to the attention of the bank's staff several months after they occur. The manager would like to know what proportion of his customers balance their checking accounts within 30 days of receiving a transaction statement from the bank.Using systematic random sampling, 400 checking account customers are contacted by telephone and asked if they routinely balance their accounts within 30 days of receiving a statement. 271 of the 400 customers respond Yes.
a. Develop a 95% confidence interval estimate for the proportion of the population of checking account customers at UCU that routinely balance their accounts in a timely manner.
b. Suppose UCU wants a 95% confidence interval estimate of the population proportion with a margin of error of E = .025. How large a sample size is needed?

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Definitions:

Operating Activity

Transactions and events related to the core business functions of an organization, such as sales and purchases of goods or services.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, such as issuing debt, repaying loans, or distributing dividends.

Issued Bonds Payable

Long-term liabilities representing borrowed funds that a company must repay to bondholders.

Paid Note Payable

The satisfaction or settlement of a debt instrument or promissory note through payment by the debtor to the lender according to the agreed terms.