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Question 10.SP.3: The preliminary work sample of an operation indicates the fo...

The preliminary work sample of an operation indicates the following:

Number of times operator working 60
Number of times operator idle 40
Total number of preliminary observations 100

What is the required sample size for a 99.73% confidence level with ±4, precision?

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z = 3 for 99.73 confidence; p = \frac{60}{100} = 0.6; h = 0.04

So:
n = \frac{z^2 p(1 – p)}{h^2} = \frac{(3)^2 (0.6)(0.4)}{(0.04)^2} = 1,350 sample size

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