A Quality Control Expert Wants to Estimate the Proportion of Defective

question 35

Short Answer

A quality control expert wants to estimate the proportion of defective components that are being
manufactured by his company to within 2.5%.A sample of 300 components showed that 20 were
defective.How large a sample is needed to estimate the true proportion of defective components with
99% confidence? (Using the text z-table value)

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Definitions:

CCA Rate

The abbreviation for Capital Cost Allowance rate, which is the rate at which a business can claim depreciation on certain assets for tax purposes.

After-Tax Lease Payment

Lease payments adjusted for tax effects, representing the actual cash outflow for the lessee after considering tax deductions or liabilities.

Tax Rate

The proportion of income that an individual or corporation must pay as taxes.

Net Advantage to Leasing

The total financial benefit that a business might achieve from leasing assets rather than purchasing them, considering all costs and savings.