The Nevada National Bank, headquartered in Las Vegas, has some 400,000 users of its credit card scattered throughout the state. The application forms for the credit card ask for the usual information about name, address, phone, income, education, and so on that is typical of such applications. The bank is interested in determining if there is any relationship between the uses of the card and the socioeconomic characteristics of the user; e.g., is there a difference in the characteristics of those people who use the credit card for major purchases only (e.g., appliances), and those who use it for minor as well as major purchases?

a.Identify the target population and the sampling frame that would be used by the bank.

b.Indicate how you would draw a simple random sample from the sampling frame identified in (a).

c.Indicate how you would draw a stratified sample from the sampling frame.

d.Indicate how you would draw a systematic random sample from the sampling frame.

e.Which method would be preferred? Why?