Sample size for finding the population proportion

Assignment Help Basic Statistics

Reference no: EM1316605

Destructive sampling, in which the test to determine whether an item is defective destroys the item, is generally expensive, and the high costs involved often prohibit large sample sizes. For example, suppose the National Highway Traffic Safety Administration (NHTSA) wishes to determine the proportion of new tires that will fail when subjected to hard braking at a speed of 60 miles per hour. NHTSA can obtain the tires for $25 (wholesale price) each. Suppose the budget for the experiment is $10,000, and NHTSA wishes to estimate the percentage that will fail to within 0.02 with 95% confidence. Assuming that the entire $10,000 can be spent on tires (ignoring other costs), and that the true fraction that will fail is approximately .05, can NHTSA attain its goal while staying within the budget? Explain.

Reference no: EM1316605

Questions Cloud

Proportion of debit cardholders : Is the sample size large enough to construct a valid confidence interval for the proportion of debit cardholders who have used their card in making purchases over the Internet?

Probability depends on normal distribution : Probability depends on normal distribution. If a random sample of nine 18 year old men is selected illustrate what is the probability that the mean height

Risk tolerance as well as your need to diversify : Risk tolerance as well as your need to diversify the portfolio and the Effects of Portfolio Risk for Average Stocks will impact your future investment decisions

Would a better economy lead you to switch jobs : If a worker is chosen at random, what is the probability that he or she.Is very improbable to switch jobs. Is somewhat likely or very likely to switch jobs.

Sample size for finding the population proportion : Supposing that the entire $10,000 can be spent on tires (ignoring other costs), and that the true fraction that will fail is approximately .05, can NHTSA attain its goal while staying within the budget? Describe.

Perform the operation and make the result in standard form : Perform the operation and make the result in standard form

Elucidate the mean and standard deviation : Illustrate what can we say about the probability distribution. Is it approximately normal, elucidate the mean and standard deviation.

Calculation of portfolio return and beta and risk involved : Calculation of Portfolio Return and Beta and risk involved and what is the expected return on a portfolio that is equally invested in the two assets

Check for symmetry : Check for symmetry with respect to the x and y-axis and the origin.

User Account

All Pages