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How Many Observations Should Be Taken to Be 90% Confident

question 22

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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?


Definitions:

Goal

A desired result or outcome that a person or organization envisions, plans, and commits to achieve.

Simple Interest

Interest calculated only on the principal amount, without compounding.

Account

A record or statement that details financial transactions and their impact on an entity's financial position.

Guaranteed Annual Rate

The minimum annual return promised to an investor by an investment product, regardless of market conditions.

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