Indidcate how many card holders

Reference no: EM13338084

Piggy Bank 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 $10 of the true mean with a 98% confidence level. The standard deviation is thought to be $500. How many card holders should be sampled? After you've determined how many card holders should be sampled, Piggy Bank comes back and says that it will cost $5 per sample and they were only planning on spending $10,000 on the sample. Indidcate how many card holders should be sampled to mee the original requirements of the sample. Then explain the trade offs that will occur when you lower the sample to $10,000 to meet their budget.

Reference no: EM13338084

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