I'm afraid this question is not complete. After doing some online research, it appears that the question in its entirety should read:
"A partner company to American Intellectual Union (AIU), Universal Credit Inc., would like to examine the required sample size needed to be able to estimate the mean dollars that each card holder will spend each month. It would like to be within plus or minus $25 of the true mean with a 98% confidence level. The standard deviation is thought to be $400. How many card holders should be sampled? Your company charges a set dollar amount for each account in the sample.
After you've determined how many card holders should be sampled, Universal Credit Inc. Comes back and says the cost for the analysis is greater than their budget for the project and they want you to lower the sample size.
In a one-page memo to the Universal Credit product development team, indicate how many card holders should be sampled to meet the original requirements of the sample. Then explain the trade-offs that will occur when you decrease the sample to meet their budget."
This question, along with many others like it, is from a business study unit entitled BUSN311.
Because this question is from a specific textbook to which I do not have access, I am afraid I cannot provide you with an answer for this question. However, online forums suggest that pages 361-362 in the text book are the pages that must be read in order to answer this question.
Alternatively, you could check out websites which have answers for very similar questions. You could then use these answers as models to write your own answer. One website you could try is http://www.algebra.com/algebra/homework/Probability-and-statistics/Probability-and-statistics.faq.question.464424.html. This website contains the same kind of question, just with slightly different numbers, for example, a 95% confidence level is mentioned, whereas your question asks for 98%.
On the other hand, you could pay to download a model answer, which you can then use to write your own answer. One such document can be found at this website: http://www.justanswer.com/math/45630-partner-company-american-intellectual-union-aiu-universal.html.
"A partner company to American Intellectual Union (AIU), Universal Credit Inc., would like to examine the required sample size needed to be able to estimate the mean dollars that each card holder will spend each month. It would like to be within plus or minus $25 of the true mean with a 98% confidence level. The standard deviation is thought to be $400. How many card holders should be sampled? Your company charges a set dollar amount for each account in the sample.
After you've determined how many card holders should be sampled, Universal Credit Inc. Comes back and says the cost for the analysis is greater than their budget for the project and they want you to lower the sample size.
In a one-page memo to the Universal Credit product development team, indicate how many card holders should be sampled to meet the original requirements of the sample. Then explain the trade-offs that will occur when you decrease the sample to meet their budget."
- Where is this question from?
This question, along with many others like it, is from a business study unit entitled BUSN311.
- How can I find the answer to this question?
Because this question is from a specific textbook to which I do not have access, I am afraid I cannot provide you with an answer for this question. However, online forums suggest that pages 361-362 in the text book are the pages that must be read in order to answer this question.
Alternatively, you could check out websites which have answers for very similar questions. You could then use these answers as models to write your own answer. One website you could try is http://www.algebra.com/algebra/homework/Probability-and-statistics/Probability-and-statistics.faq.question.464424.html. This website contains the same kind of question, just with slightly different numbers, for example, a 95% confidence level is mentioned, whereas your question asks for 98%.
On the other hand, you could pay to download a model answer, which you can then use to write your own answer. One such document can be found at this website: http://www.justanswer.com/math/45630-partner-company-american-intellectual-union-aiu-universal.html.