Question

An appliance manufacturer gives a warranty, and 95 percent of its appliances do not require repair before the warranty expires. An organization buys 10 of these appliances. Calculate an interval that contains 95.44 percent of all the appliances that will not require repair. Discuss.

Answer 1

Answer:

An appliance manufacturer gives a warranty, and 95 percent of its appliances do not require repair before the warranty expires. An organization buys 10 of these appliances. The interval that contains 95.44 percent of all the appliances that will not require repair is (8.12, 10.88)

Explanation:

Here we can calculate the confidence interval for a proportion of 0.95 and a sample size of 10. Note that the critical value for 95.44% confidence is 1.9991.

Between 81.22% and 108.78% of 10 units is 8.12 and 10.88 units. Therefore the confidence interval is:(8.12, 10.88).