The banking industry has suffered in recent years because of a high default rate on energy-related loans. The standard deviation is 10,000 . How large a sample must you take from banking records to be 98 confident that your estimate for the amount of these defaults is within 1000 of the true mean loan amount?
a. 567
b. 233
c. 240
d. 543
e. 890
Question 2
Because of the popularity of movies as an entertainment medium for college students, you plan to do a national study of the average cost of a movie ticket. If you assume that = 0.50, what sample size would you have to take to be 95 confident that your estimate was within 0.25 of the true mean ticket prices?
a. 15
b. 7
c. 8
d. 4
e. 16
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