Scanning errors at Wal-Mart. Refer to the National Institute for Standards and Technology (NIST) study of the

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Scanning errors at Wal-Mart. Refer to the National Institute for Standards and Technology (NIST) study of the accuracy of checkout scanners at Wal-Mart stores in California, presented in Exercise 3.56

(p. 169). NIST sets standards so that no more than 2 of every 100 items scanned through an electronic checkout scanner can have an inaccurate price. Recall that in a sample of 60 Wal-Mart stores, 52 violated the NIST scanner accuracy standard. Suppose you want to estimate the true proportion of Wal-Mart stores in California that violate the NIST standard.

a. Explain why the large-sample methodology of Section 7.4 is inappropriate for this study.

b. Determine the number of Wal-Mart stores that must be sampled in order to estimate the true proportion to within .08 with 95% confidence, using the large-sample method.

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