A large bank in a metropolitan area has a large number of secured loans on apartment facilities throughout the area. Local economic indicators suggest the percentage of vacant apartments ranges from 7 to 10. Concerned about the borrowers' ability to meet loan obligations on time the bank decides to sample from the apartments used to secure loans. The officer responsible for the sample decides to allow a maximum error of the estimate of 0.01 with 99 percent confidence. The officer wishes to take a sample large enough to cover all proportions within the estimated vacancy range. Compute the sample size needed for this study.
Question 2
A cost accountant wished to establish the average amount, , spent by executives per day on travel and lodging. Then a comparison, between the average and the amount turned in to be reimbursed, will be made and unreasonably high or low expense amounts audited. A random sample of 50 executive expense receipts is taken. The average in the sample was 208 . From a similar survey the standard deviation of the amounts is approximately = 29 . The accountant prepares a 90-percent confidence level for . What is its maximum error?
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