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The manufacturer of a particular type of airbag was notified that one such airbag had activated in a dangerous manner. As part of its preliminary investigation the manufacturer took a sample of 120 cars with this type of airbag and tested each to see if any others also activated dangerously. It was found that eight of the airbags did in fact activate dangerously.
a. State the name and the value of the statistic that would provide the best estimate for the proportion of the population of these airbags that would activate dangerously.
b. Construct a 95% confidence interval to estimate the proportion of all airbags of this type to activate dangerously.
d. The company's consumer affairs department wanted to be able to report a narrower confidence interval from this exercise. What would have to be done to obtain a narrower confidence interval, while maintaining the same 95% level of confidence?
e. The consumer affairs department finally determined that they needed an estimate of the proportion of defective airbags of this type to within +/-2% with a 95% confidence level. Use the information from the preliminary investigation to determine the sample size required.
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