Question

The manager of a department store wants to determine the proportion of customers who use the store's credit card when making a purchase. What sample size should he select so that at 96% confidence the error will not be more than 10%?
a. 106.
b. 76.
c. 1.
d. There is not enough information given to determine the sample size.

Answer 1

Answer:

Step-by-step explanation:

There is no information about proportion estimate, so  p = 0.50

Sample size formula is  Z^2 * p( 1 - p) / E^2

E - margin of error = 10%

Sample size = 2.0537^2 * 0.50 * 0.50 / 0.10^2

= 105.44  

Sample size is approximately 106