Question
The General Manager of the tire company Good Racing stated that based on previous experiences as much as 4 percent of each production was damaged.
The General Manager of the tire company "Good Racing" stated that based on previous experiences as much as 4 percent of each production was damaged. From this data, then:
a. For 100 tires produced, what is the probability that 5 percent or more of the tire will be damaged?
b. Of the 100 tires that were produced, it turned out that 5 tires were damaged. With a confidence level of 99 percent, can statistically validate the statement of the General Manager of the tire company "Good Racing"?
c. If a student of the Management Program wants to make an estimate of the damage to the tire production, with the hope that the error of estimation is not more than the 1 percent range and with a 95 percent confidence level, how many tire samples should be taken at least?
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