Question 275990: You are responsible for reliability of the electronic product that your company produces.
You decide to measure the time between equipment malfunctions over a one-year period. Over that time you measured 40 electronic products. You made 850 observations with a mean time between equipment failures of 550.35 hours, and a sample standard deviation of 207 hours.
Your company supplies the electronic product to another company as a component to their product. You guarantee an average time between malfunctions of 600 or more hours.
Calculate a 99% confidence interval estimate for the mean time between malfunctions for all electronics of this type then interpret the results to assess whether your company will have a problem with this guarantee. Explain your reasoning?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! You are responsible for reliability of the electronic product that your company produces.
You decide to measure the time between equipment malfunctions over a one-year period. Over that time you measured 40 electronic products. You made 850 observations with a mean time between equipment failures of 550.35 hours, and a sample standard deviation of 207 hours.
Your company supplies the electronic product to another company as a component to their product. You guarantee an average time between malfunctions of 600 or more hours.
Calculate a 99% confidence interval estimate for the mean time between malfunctions for all electronics of this type then interpret the results to assess whether your company will have a problem with this guarantee. Explain your reasoning?
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sample mean = 550.35
standard error = E = invNorm(0.995)*207/sqrt(850) = 18.29
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99% CI: 550.35-18.29 < u < 550.35+18.29
99% CI: 532.06 < u < 568.64
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For your component your guarantee it too high.
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Cheers,
Stan H.
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