Question

Suppose that you are a systems analyst on a project that involves modifying the sales order process. Since your company receives in the neighborhood of 2500 sales orders per day, how many do you need to sample if you want 95% certainty that you have covered all variations? What if the number of sales orders per day was 25,000 orders?

Answer 1

Answer:

Sample size = 384.16 ≈ 385

If we increase the order size to 25,000, there will be no change in the sample size as sample size is independent of the number of orders

Explanation:

Data provided in the question:

Number of sales order received  per day = 2500

Confidence level = 95%

Certainty factor for 95% certainty = 1.96

Now,

Sample size = $0.25\times(\frac{\textup{Certainty factor}}{\textup{1 -Desired accuracy}})^2$

on substituting the respective values, we get

Sample size = $0.25\times(\frac{\textup{1.96}}{\textup{1 - 0.95}})^2$

or

Sample size = 384.16 ≈ 385

If we increase the order size to 25,000, there will be no change in the sample size as sample size is independent of the number of orders