Question

A manufacturer turns out a product item that is labeled either defective or not defective.

(a) If the manufacturer wants to estimate the percentage of defective products procduced with 99% confidence to within 0.03 of the true value, what sample size should they take?

(b) A random sample of 500 items is taken from production, and 30 are found to be defective, in a random sample of 500 from a new production method 20 are found to be defective. Construct a 95% confidence interval for the difference in the proportions of defective items between two methods.

Answer #1

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A manufacturer turns out a product item that is labeled either
“defective” or “not defective”. In order to estimate the proportion
defective, a random sample of 100 items is taken from production,
and 10 are found to be defective. Following implementation of a
quality improvement program, the experiment is conducted again. A
new sample of 100 is taken, and this time only 6 are found to be
defective.
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