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ESTIMATING THE POPULATION MEAN

SEE ECCO INFO ATTACHED

The quality manager at Ecco Company, a maker of back-up alarms for use on industrial vehciles such as forklifts, is interested in estimating the mean dollar volume for warranty claims for products made in Boise on the day shift. He has taken a pilot sample. See info attached.

a. Assuming that the manager wishes to estimate the mean warranty amount to withing
±$8.00 with 90% confidence, how many additional claims must be selected to develop the estimate?

b. Suppose the sample size determined in part a is more than the manager is willing to use. What options are open to the manager? Discuss.

c. Referring to parts a and b, suppose the manager wishes to cut the total sample size in half. For each option available to the manger, show specifically what must be done to achieve the reduction in sample size.

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See the attached Excel file. Thanks

The quality manager at Ecco Company, a maker of back-up alarms for use on industrial vehicles such as forklifts, is interested in estimating the mean dollar volume for warranty claims for products made in Boise on the day shift. He has taken a pilot sample. See info attached.

a. Assuming that the manager wishes to estimate the mean warranty amount to withing
±$8.00 with ...

Solution Summary

It shows how to estimate the population mean for the warranty claim.

$2.19