The Quality Control Department Wants to Estimate the True Percentage

question 18

Multiple Choice

The Quality Control Department wants to estimate the true percentage of rework for electrical components to within ±4%, with 99% confidence.Based on similar past studies, the percentage of rework was found to be 12%.How many components should they sample?

• A)651
• B)1000
• C)344
• D)438
• E)579

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Definitions:

Producer Surplus

The discrepancy between what producers are ready to take for a product or service and the real amount they get.

Tax

A required contribution or another kind of monetary levy imposed by a government body on a taxpayer to underpin government expenditure and different public spending initiatives.

Deadweight Loss

Deadweight loss refers to the loss in economic efficiency that occurs when the equilibrium for a good or service is not achieved or is unattainable.

Consumer Surplus

The gap in the total amount consumers are willing to invest in a product or service and the amount they end up paying.