The Manager of a Department Store Wants to Determine What

question 40

Short Answer

The manager of a department store wants to determine what proportion of people who enter the store use the store's credit card for their purchases. What size sample should he take so that at 99% confidence the error will not be more than 8%?

---

Definitions:

Mandatory Indirect Pay

Required compensation benefits provided by employers, such as social security contributions and unemployment insurance, that are not part of direct wages.

Medical Coverage

An insurance benefit that covers the cost of an individual's healthcare needs, usually provided by employers or purchased individually.

Workers' Compensation

Insurance that provides financial benefits and medical care to employees who are injured or become ill as a direct result of their job.

Profit Sharing

An employee benefit scheme where a portion of a company's profits is distributed to the employees, strengthening their investment in the company's success.