Asked by Tiffany Riggs-Kredit on May 06, 2024
Verified
A retail store manager is trying to improve and control the rate at which cashiers sign customers up for store credit cards. Suppose that the manager wants the maximum standard deviation of the sampling distribution to be 5% and he cannot estimate p-bar. How many observations per sample would this require?
Standard Deviation
A statistical measure that indicates the extent of deviation for a group as a whole.
Sampling Distribution
The probability distribution of a given statistic based on a random sample, used in statistical hypothesis testing and estimation.
Observations
The act of monitoring or recording systematically selected variables to gather data or insights.
- Apply statistical quality control methods to various contexts, such as manufacturing, healthcare, and retail.
- Understand the significance of the standard deviation in the context of process control and improvement.
Verified Answer
NS
Nicolene SinclairMay 09, 2024
Final Answer :
Maximum standard deviation occurs when p-bar = .5. Using the equation for sigma-p to get
.05 = sqrt (.5(1 - .5)/n). Solving for n gives n = 100 observations per sample required.
.05 = sqrt (.5(1 - .5)/n). Solving for n gives n = 100 observations per sample required.
Learning Objectives
- Apply statistical quality control methods to various contexts, such as manufacturing, healthcare, and retail.
- Understand the significance of the standard deviation in the context of process control and improvement.