A bank wishes to estimate the mean balances owed by customers holding Mastercard. The population standard deviation is estimated to be $300. If a 98% confidence interval is used and the maximum allowable error is $80, how many cardholders should be sampled? A. 76
B. 85
C. 86
D. 77

D. 77

Step-by-step explanation:

We have to find our level, that is the subtraction of 1 by the confidence interval divided by 2. So:

Now, we have to find z in the Z-table as such z has a p-value of .

That is z with a p-value of , so Z = 2.327.

Now, find the margin of error M as such

In which is the standard deviation of the population and n is the size of the sample.

The population standard deviation is estimated to be $300

This means that

If a 98% confidence interval is used and the maximum allowable error is $80, how many cardholders should be sampled?

This is n for which M = 80. So

Rounding up:

77 cardholders should be sampled, and the correct answer is given by option d.

answer: d. $20

step-by-step explanation:

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