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Alla [95]
3 years ago
11

From a survey of coworkers you find that 36​% of 200 have already received this​ year's flu vaccine. An approximate 95​% confide

nce interval is ​(0.293​, 0.427​). ​a) How would the confidence interval change if the sample size had been 1800 instead of 200​? ​b) How would the confidence interval change if the confidence level had been 90​% instead of 95​%? ​c) How would the confidence interval change if the confidence level had been 98​% instead of 95​%?
Business
1 answer:
sveta [45]3 years ago
7 0

Answer:

Part a: <em>By increasing the sample size for same confidence level, the confidence interval is reduced.</em>

Part b: <em>By reducing the confidence level for same sample size, the confidence interval is reduced.</em>

Part c: <em>By increasing the confidence level for same sample size, the confidence interval is increased.</em>

Explanation:

Part a

As from given data

  • Percentage of co-workers already received flu vaccine p=0.36,
  • n=1800

The confidence interval is given as

CI=\hat{p} \pm z_{\alpha}\sqrt{\frac{p(1-p)}{n}}

Here

  • z is given for 95% confidence level as 1.960

By substituting values in the equation

CI=\hat{p} \pm z_{\alpha}\sqrt{\frac{p(1-p)}{n}}\\CI=0.36 \pm 1.960\sqrt{\frac{0.36(1-0.36)}{1800}}\\CI=0.36 \pm 0.02217\\CI=(0.3378,0.3812)

It is evident that the confidence interval is smaller, indicating a lesser chance of error.

<em>This means that by increasing the sample size for same confidence level, the confidence interval is reduced.</em>

Part b

As from given data

  • Percentage of co-workers already received flu vaccine p=0.36,
  • n=200

The confidence interval is given as

CI=\hat{p} \pm z_{\alpha}\sqrt{\frac{p(1-p)}{n}}

Here

  • z is given for 90% confidence level as 1.645  

By substituting values in the equation

CI=\hat{p} \pm z_{\alpha}\sqrt{\frac{p(1-p)}{n}}\\CI=0.36 \pm 1.645\sqrt{\frac{0.36(1-0.36)}{200}}\\CI=0.36 \pm 0.0557\\CI=(0.3043,0.4157)

It is evident that the confidence interval is smaller, as the confidence level is reduced.

<em>This means that by reducing the confidence level for same sample size, the confidence interval is reduced.</em>

Part c

As from given data

  • Percentage of co-workers already received flu vaccine p=0.36,
  • n=200

The confidence interval is given as

CI=\hat{p} \pm z_{\alpha}\sqrt{\frac{p(1-p)}{n}}

Here

  • z is given for 98% confidence level as 2.33

By substituting values in the equation

CI=\hat{p} \pm z_{\alpha}\sqrt{\frac{p(1-p)}{n}}\\CI=0.36 \pm 2.33\sqrt{\frac{0.36(1-0.36)}{200}}\\CI=0.36 \pm 0.07899\\CI=(0.2810,0.4389)

It is evident that the confidence interval is greater, as the confidence level is increased.

<em>This means that by increasing the confidence level for same sample size, the confidence interval is increased.</em>

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b.

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Cr. Accumulated Depletion   $32,760,000

Explanation:

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Value of Rights = $494,000,000

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Depletion expense is based on ratio of the amount of extraction in period to the total expected resource.

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Depletion Rate = $494,000,000 / 475,000,000 tons = $1.04 per ton

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A popular, local coffeeshop in one of the suburbs of New York City (NYC) estimates they use 3,500 pounds of coffee annually. The
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a) The determination of the optimal size of the order assuming an EOQ model for the local coffee shop is <u>265 pounds</u>.

b) The total cost in the new coffee shop where the demand for coffee increased to 4,000 pounds at an order size of 265 pounds per order (assuming a unit cost of $3 per pound) is <u>$253,500</u>.

<h3>What is the EOQ Model?</h3>

The economic order quantity (EOQ) model calculates the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.

It is determined using the following model:

EOQ = square root of: 2 (ordering costs)(demand rate) / holding costs.

Thus, the EOQ model can be worked out as follows:

  • Determine the demand units.
  • Determine the ordering cost.
  • Determine the holding cost.
  • Multiply the demand by 2.
  • Then multiply the result by the order cost.
  • Divide the result by the holding cost.

<h3>Data and Calculations:</h3>

a) The annual demand for coffee = 3,500 pounds

Holding cost per pound = $10

Ordering cost = $100

EOQ = square root of: 2 ($100 x 3,500) / $10

= 265 pounds

The annual demand for coffee = 4,000 pounds

Holding cost per pound = $60

Ordering cost = $100

EOQ (Order size) = 265 pounds

Assumed unit cost per pound = $3

The total cost in the new coffee shop = $

Annual holding cost = $240,000 ($60 x 4,000)

Annual ordering cost = $1,500 ($100 x 4,000/265)

Annual purchase cost = $12,000 (4,000 x $3)

Total costs = $253,500

Learn more about the economic order quantity at brainly.com/question/14625177

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