OCR S3 2009 January — Question 3

Exam BoardOCR
ModuleS3 (Statistics 3)
Year2009
SessionJanuary
TopicCentral limit theorem
TypeProportion confidence interval

3 In a random sample of credit card holders, it was found that \(28 \%\) of them used their card for internet purchases.
  1. Given that the sample size is 1200 , find a \(98 \%\) confidence interval for the percentage of all credit card holders who use their card for internet purchases.
  2. Estimate the smallest sample size for which a \(98 \%\) confidence interval would have a width of at most \(5 \%\), and state why the value found is only an estimate.