MBNA Canada MBNA Canada’s affiliates program allows other
organizations to offer credit cards to their members. The Toronto
Blue Jays and the Edmonton Eskimos m, as does the Canadian
Automobile Association. Whenever a member of one of these
organizations makes a purchase using the card, MBNA processes the
transaction and gives a certain percentage of the value of the
transac- both use MBNA’s affiliates progra tion to the
organization. his area is deliberately left blank Suppose you’re
working for a sports club that’s considering joining MBNA’s
affiliates You know that many of your mem- bers would be proud to
use a card with your logo on it, but you also know that many of
them already have other credit cards, and you don’t want to annoy
them by offering them another one if they don’t want it. The
president of the club decides to become an MBNA affiliate only if
the proportion of members signing on for the new card is over 3%.
You know from a colleague in another club that they had a take-up
rate for affili urvey 100 program. yours and decide to s ate cards
of 4.3%. You think the other club is similar to of your members to
find out how many would accept the new card. What is the
probability that more than 3% of your sample would accept the new
card? State your assumptions clearly. Indicate on a graph how this
probability changes if you increase your sample size in increments
of 100 from 100 to 1000. Approximately what sample size do you
recommend?
