The operations manager of a large production plant would like to estimate the average amount of time workers take to assemble a new electronic component. After observing a number of workers assembling similar devices, she guesses that the standard deviation is 7 minutes. How large a sample of workers should she take if she wishes to estimate the mean assembly time to within 19 seconds. Assume the confidence level to be 99%.
Solution :
Given that,
standard deviation = = 7 * 60 second = 420
margin of error = E = 19
At 99% confidence level the z is ,
= 1 - 99% = 1 - 0.99 = 0.01
/ 2 = 0.01 / 2 = 0.005
Z/2 = Z0.005 = 2.576
Sample size = n = ((Z/2 * ) / E)2
= ((2.576 * 420) / 19)2
= 3242.34
= 3242
Sample size = 3242
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