A well-known bank credit card firm wishes to estimate the proportion of credit card holders who carry a nonzero balance at the end of the month and incur an interest charge.
Assume that the desired margin of error is .03 at 98% confidence.
a. How large a sample should be selected if it is anticipated that roughly 70% of the firm’s card holders carry a nonzero balance at the end of the month?
b. How large a sample should be selected if no planning value for the proportion could be specified?