Universal Credit Inc., would like to examine the requiredsample size needed to b

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Universal Credit Inc., would like to examine the requiredsample size needed to be able to estimate the mean dollars thateach card holder will spend each month. It would like to be withinplus or minus $10 of the true mean with a 98% confidence level. Thestandard deviation is thought to be $500. How many card holdersshould be sampled? Second Part After you've determined how many card holders should besampled, Universal Credit Inc. comes back and says that it willcost $5 per sample, and they were only planning on spending $10,000on the sample. Indicate how many card holders should be sampled tomeet the original requirements of the sample. Then explain thetrade-offs that will occur when you lower the sample to $10,000 tomeet the budget. Universal Credit Inc., would like to examine the requiredsample size needed to be able to estimate the mean dollars thateach card holder will spend each month. It would like to be withinplus or minus $10 of the true mean with a 98% confidence level. Thestandard deviation is thought to be $500. How many card holdersshould be sampled? Second Part After you've determined how many card holders should besampled, Universal Credit Inc. comes back and says that it willcost $5 per sample, and they were only planning on spending $10,000on the sample. Indicate how many card holders should be sampled tomeet the original requirements of the sample. Then explain thetrade-offs that will occur when you lower the sample to $10,000 tomeet the budget.

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