In: Statistics and Probability
The operations manager of a large production plant would like to estimate the average amount of time workers take to assemble a new electronic component. After observing a number of workers assembling similar devices, she guesses that the standard deviation is 10 minutes. How large a sample of workers should she take if she wishes to estimate the mean assembly time to within 20 seconds. Assume the confidence level to be 97%.
Solution :
Given that,
standard deviation = = 10 minutes = 10 * 60 = 600 second
margin of error = E = 20 second
At 97% confidence level the z is ,
= 1 - 97% = 1 - 0.97 = 0.03
/ 2 = 0.03 / 2 = 0.015
Z/2 = Z0.015 = 2.17
Sample size = n = ((Z/2 * ) / E)2
= ((2.17 * 600) / 20)2
= 4238 secons
Sample size = 4238 seconds = 4238 / 60 = 70.63 minutes