Refer to the spreadsheet entitled defects.xlsx for this question.

The data in the spreadsheet outlines the defect rate of a machine over the past 50

production runs. It is estimated that the cost of obtaining this data is $40 per production

run.

a. Using the sampling technique taught in this course, compute a 95% confidence interval

estimate of the population average defect rate of this machine.

b. The manager expect the confidence interval to be a range no wider than 1% (That is,

±0.5% about the sample mean). Does your answer from part a meet this expectation?

c. In order to meet the requirement in part b while maintaining the same level of

confidence, what is the minimum budget required?

d. Demonstrate mathematically that the budget computed in part c is sufficient to produce

a 95% confidence interval no wider than 1%.

Defect.xcl

Production Run | Defect Rate |

1 | 0.06 |

2 | 0.11 |

3 | 0.01 |

4 | 0.08 |

5 | 0.16 |

6 | 0.08 |

7 | 0.14 |

8 | 0.07 |

9 | 0.02 |

10 | 0.07 |

11 | 0.06 |

12 | 0.18 |

13 | 0.15 |

14 | 0.12 |

15 | 0.06 |

16 | 0.19 |

17 | 0.11 |

18 | 0.04 |

19 | 0.18 |

20 | 0.04 |

21 | 0.10 |

22 | 0.19 |

23 | 0.03 |

24 | 0.01 |

25 | 0.10 |

26 | 0.05 |

27 | 0.18 |

28 | 0.03 |

29 | 0.11 |

30 | 0.16 |

31 | 0.18 |

32 | 0.17 |

33 | 0.14 |

34 | 0.14 |

35 | 0.02 |

36 | 0.03 |

37 | 0.07 |

38 | 0.08 |

39 | 0.14 |

40 | 0.14 |

41 | 0.20 |

42 | 0.14 |

43 | 0.19 |

44 | 0.18 |

45 | 0.13 |

46 | 0.09 |

47 | 0.15 |

48 | 0.08 |

49 | 0.07 |

50 | 0.03 |

Subject | Mathematics |

Due By (Pacific Time) | 11/28/2013 12:00 pm |

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