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?