General Grant Must Send Orders to General Butler

question 20

Essay

General Grant must send orders to General Butler. Carrier pigeons are the medium of choice. A single pigeon has a .7 probability of arriving at the proper destination in a timely fashion. How many pigeons, each carrying an identical set of orders, must Grant send in order for him to have 98% confidence that the orders reached General Butler?

Choose the appropriate z or t value for confidence interval estimation based on sample size and available data.

Understand the impact of sample size on margin of error in interval estimation.

Determine the appropriate use of sample standard deviation in interval estimation when population standard deviation is unknown.

Apply the concept of margin of error in the development of interval estimates.

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Definitions:

Average Fixed Cost

The fixed costs (costs that do not change with the level of output) of producing a good or service, divided by the quantity of output produced.

Total Cost

The entire cost of production, including both fixed and variable costs.

Average Total Cost

Average total cost is the total cost of production (fixed plus variable costs) divided by the total quantity produced, indicative of the cost per unit at different levels of output.

Average Variable Cost

The total variable cost per unit of output, found by dividing total variable costs by the quantity of output produced.