A direct-mail sales company must determine its credit policies quite carefully. Suppose that the rm suspects that
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A direct-mail sales company must determine its credit policies quite carefully. Suppose that the firm suspects that advertisements in a certain magazine have led to an excessively high rate of write-offs (accounts regarded as uncollectible). The firm wants to establish 90% confidence interval for this magazine’s write-off proportion that is accurate to 0.02.
(a) How many accounts must be sampled to guarantee this goal?
(b) If this many (the sample size n computed in part a) accounts are sampled and 10% of the sampled accounts are determined to be write-offs, what is the resulting 90% confidence intervals?
Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
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