Supervisor Kenneth Peterson wants o determine the per ent of
Supervisor Kenneth Peterson wants o determine the per ent of me a machine in his area is le e decides to use work sampling, and his nitial estimate is that the machine is de 22% of the intermediate calculations to at least two decimal placos before proceeding with further calculations,) e Round ar The number of observations that need to be taken by Peterson to be 98 0 % con dent number). at the results will be less than from the re resu ound our response to e mmediate i her ne
Solution
Z value for 98% confidence level = 2.33
E = margin of error = 0.04/2 = 0.02
p= Fraction of time machine is idle = 0.22
q = Fraction of time machine works = 1-0.22 =0.78
Number of observations = ( Z/E)(Z/E). p (1-p)
= 13572x 0.22x0.78= 2328
