Credit card balances follow a nearly normal distribution with a mean of $2,900 and a standard deviation of $860. A local credit union believes their customers are carrying an above average credit card balance, so they carry out a study to determine their customers' debt. If the study results in a standard error of $43, what sample size was used in the study

Respuesta :

Answer:

A sample size of 400 was used in the study.

Step-by-step explanation:

The Central Limit Theorem estabilishes that, for a normally distributed random variable X, with mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex], the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean [tex]\mu[/tex] and standard deviation(standard error) [tex]s = \frac{\sigma}{\sqrt{n}}[/tex].

In this problem, we have that:

[tex]\sigma = 860, s = 43[/tex]

We have to find n.

[tex]s = \frac{\sigma}{\sqrt{n}}[/tex]

[tex]43 = \frac{860}{\sqrt{n}}[/tex]

[tex]43\sqrt{n} = 860[/tex]

[tex]\sqrt{n} = \frac{860}{43}[/tex]

[tex]\sqrt{n} = 20[/tex]

[tex](\sqrt{n})^{2} = 20^{2}[/tex]

[tex]n = 400[/tex]

A sample size of 400 was used in the study.