In: Statistics and Probability
If the accepted population error rate is 5% for poor quality in a manufacturing plant, how would you determine if an employee in a manufacturing plant is not meeting the standards for quality?
The accepted population error rate is 5% for poor quality in a manufacturing plant simply tells us that we are given with the margin of error = 0.05. We must know the confidence interval for determining if an employee in a manufacturing plant is not meeting the standards for quality. If the quality rate for the employee is outside the confidence interval, then we can say that an employee in a manufacturing plant is not meeting the standards for quality.
For example, let us consider we are given with the confidence interval for the standard quality rate lies between 12.2 and 14.56 and the margin of error is 0.05. If the quality rate of an employee is 11.48, then it is obvious to say that an employee in a manufacturing plant is not meeting the standards for quality. If the quality rate of an employee is 13.39, then we can say that an employee in a manufacturing plant is meeting the standards for quality.
Therefore, confidence interval of the quality rating will help us in determining if an employee in a manufacturing plant is meeting the standards for quality.