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A manager examined data flow diagrams in a small portion of system development projects and determined...

A manager examined data flow diagrams in a small portion of system development projects and determined that there were nearly 12.5% of them with errors. His boss, the Vice-President for Systems Development wants a better estimate of the percentage so you are tasked to sample the diagrams produced for the past five years and report back. a) How large a sample would you have to examine to be 99% certain that your estimate would be within 3% of the actual percentage? Explain how you arrived at your answer. b) Given your answer to part a), how will you arrive at the estimate that you will report back to the vice-president?

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Answer #1

(a)

(b)

To report the estimate, we need to find the 99% confidence interval with sample size n = 807.

You can report the true proportion will be in the interval with 99% confidence.

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