How Many Observations Should Be Taken to Be 90% Confident

question 22

Multiple Choice

How many observations should be taken to be 90% confident of being within +2% of the actual time a machine is busy if it is believed that the machine is in use 70% of the time?

• A)2,021 observations
• B)1,421 observations
• C)789 observations
• D)365 observations

---

Definitions:

Soybean Market

A specific sector of the agricultural market focused on the trading and production of soybeans.

Supply Curve

A graph that shows the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Equilibrium Price

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers, leading to a balance in the market.

Demand Schedule

A chart indicating the amount of a product or service buyers are prepared and capable of buying at different price levels.