Statistics Essay Example | Topics and Well Written Essays - 500 words

Statistics - Essay Example Else, it will have to have an error of (+ or -) $10 with a reduced confidence level of only 67%. This shows that the estimate that could be obtained within the existing budget is not be sufficient to prepare accurate revenue forecasts. For fairly accurate revenue forecasts, accuracy in the survey of $10 error and a confidence level of 95% can be considered as adequate. For this, a minimum of 9,600 cardholders would have to be sampled. Therefore it is recommended to increase the budget to $48,000 that would give the above confidence level and error. If this is not feasible, refer to the below table which lists all other possible ways forward.The next best alternative would be to upgrade the budget by $5,000 and gain a survey result with an error of (+ or -) $15 and a confidence level of 90%. If the confidence level expected is 98%, 98% of the distribution must lie between Z=–2.3263 and Z=+ 2.3263 of the standard normal curve. (From the table Percentage points of the normal distribution. for p = 0.01, z=2.3263) p=