A company’s manager is considering simplification of a travel voucher form. In o
ID: 3320823 • Letter: A
Question
A company’s manager is considering simplification of a travel voucher form. In order to assess the costs associated with erroneous travel vouchers, the manager must estimate the total number of such vouchers that were filled out incorrectly in the last month. In a random sample of 100 vouchers drawn without replacement from the 1,220 travel vouchers submitted in the last month, 25 vouchers were filled out incorrectly.
Find a point estimate of and a 98 percent confidence interval for the total number of travel vouchers that were filled out incorrectly in the last month. (Round your answers to the nearest whole number.)
If it costs the company $13 to correct an erroneous travel voucher, find a reasonable estimate of the minimum cost of correcting all of last month’s erroneous travel vouchers. (Round your answer to the nearest whole number.)
A company’s manager is considering simplification of a travel voucher form. In order to assess the costs associated with erroneous travel vouchers, the manager must estimate the total number of such vouchers that were filled out incorrectly in the last month. In a random sample of 100 vouchers drawn without replacement from the 1,220 travel vouchers submitted in the last month, 25 vouchers were filled out incorrectly.
Explanation / Answer
Point estimate = pcap = 25/100 = 0.25
Minimum cost = 1220 * 0.25 * 13 = $3965
n 100 p 0.25 z-value of 98% CI 2.0537 SE = sqrt(p*(1-p)/n) 0.04330 ME = z*SE 0.08893 Lower Limit = p - ME 0.16107 Upper Limit = p + ME 0.33893 98% CI (0.1611 , 0.3389 )Related Questions
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