A Researcher for a Paint Company Is Measuring the Level

question 5

Multiple Choice

A researcher for a paint company is measuring the level of a certain chemical contained in a particular type of paint. If the paint contains too much of this chemical, the quality of the paint will be compromised. On average, each can of paint contains 10 percent of the chemical. How many cans of paint should the sample contain if the researcher wants to be 98 percent certain of being within 1 percent of the true proportion of this chemical?

• A) 4870
• B) 1107
• C) 26
• D) 645

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Definitions:

Retirement Need

Retirement need refers to the estimated financial requirement a person will have after retiring from work, considering factors like living expenses, healthcare costs, and planned activities.

Debt-Free

A state in which an individual or entity has no outstanding debt obligations.

Over-Optimism

The tendency of individuals or businesses to have excessively positive expectations about future events or outcomes, often leading to underestimation of risks.

Net Present Values

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.