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Back to 8.4 Calculating the Sample Size n: Continuous and Binary Random Variables

8.4 Exercise 60

Avg difficulty 2.5

A company has been running an assembly line with 97.42%% of the products made being acceptable. Then, a critical piece broke down. After the repairs the decision was made to see if the number of defective products made was still close enough to the long standing production quality. Samples of 500 pieces were selected at random, and the defective rate was found to be 0.025%.

  1. Is this sample size adequate to claim the company is checking within the 90% confidence interval?
  2. The 95% confidence interval?

OpenStax Introductory Business Statistics 2e, 8.4 Calculating the Sample Size n: Continuous and Binary Random Variables, exercise 60

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Adapted from Introductory Business Statistics 2e © 2023 Rice University. Licensed under CC BY 4.0. Source: Introductory Business Statistics 2e. Imported at revision 50ec917.