A Bank Manager Wants to Determine the Percent of Time

question 206

Multiple Choice

A bank manager wants to determine the percent of time the bank's tellers are working and idle. He decides to use work sampling, and his initial estimate is that the tellers are idle 22% of the time. Approximately how many observations should be taken to be 95% confident that the results will not be more than 5% away from the true result?

• A) 6
• B) 16
• C) 203
• D) 264
• E) 246

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Definitions:

LCL

Lower Control Limit, a statistical measure used in quality control processes to define the lowest acceptable limit of a process variation.

Out-of-control Conditions

Situations in a manufacturing or process environment where variables exceed predetermined control limits, indicating potential quality issues.

Variation

The extent to which data points in a dataset differ from each other and from the mean.

Measurement Systems

Systems and procedures used to assign numbers or other symbols to quantify the properties of objects or events according to specific rules.