The Minnesota National Bank, headquartered in Minneapolis, Minnesota, has some 400,000 users of its credit card scattered throughout the state of Minnesota. The application forms for the credit card asked for the usual information on name, address, phone, income, education, and so on, that is typical of such applications. Managers now want to determine if there is any relationship between how people use the card and the card owner's socioeconomic characteristics. For example, is there a difference in the characteristics of those people who use the credit card for major purchases only, such as appliances, and those who use it for minor as well as major purchases?
a. Identify the population and sampling frame that would be used by Minnesota National Bank.
b. Indicate how you would draw a simple random sample from the above sampling frame.
c. Indicate how you would draw a stratified sample from the above sam¬pling frame.
d. Indicate how you would draw a cluster sample from the above sampling frame.
e. Which method would be preferred? Why?
f. Assume that you will use telephone interviews, contact information is all current, all respondents are eligible, 20 percent of the people contacted will refuse to participate, and the noncontact rate will be 65 percent. Calculate TSE, the number of elements to be drawn from the sampling frame, if you planned to draw a simple random sample.