Consider the Following to Answer the Question(s) Below

question 24

Multiple Choice

Consider the following to answer the question(s) below:
One division of a large defense contractor manufactures telecommunication equipment for the military. This division reports that 12% of non-electrical components are reworked. Management wants to determine if this percentage is the same as the percentage rework for electrical components manufactured by the entire company. The Quality Control Department plans to check a random sample of the over 10,000 electrical components manufactured across all divisions.
-The Quality Control Department wants to estimate the true percentage of rework for electrical components to within 4%, with 99% confidence. How many components should they sample?

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

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Definitions:

Observational Data

Information gathered by watching and recording actions or outcomes, without intervening or altering the situation.

External Secondary Data

Information that has been collected previously by someone else and is available outside the organization for research purposes.

Economic Research Service

A U.S. government agency providing economic research and analysis, primarily in agriculture, food, the environment, and rural economies.

U.S. Census Bureau

A leading organization within the U.S. Federal Statistical System tasked with generating statistics about the population and economic conditions of the United States.