You Wish to Construct a 90% Confidence Interval to Compare

question 21

Multiple Choice

You wish to construct a 90% confidence interval to compare two proportions.If we wish to obtain a margin of error of at most 0.03,what sample size should we take from each group? Assume equal sample sizes.

• A)752
• B)1504
• C)1503
• D)751
• E)1984

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Definitions:

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers for goods or services sold on credit.

Credit Sales

Credit sales are transactions where the buyer is allowed to pay for goods or services at a later date, extending credit.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered on credit.

Compensating Balance

A minimum balance that must be maintained in a bank account, often required by banks in return for loans or as part of a service agreement.