In a paper presented at the 2000 Conference of the International Association for Time Use Research


Question: Destructive sampling, in which the test to determine whether an item is defective destroys the item, is generally expensive, and the high costs involved often prohibit large sample sizes. For example, suppose the National Highway Traffic Safety Administration (NHTSA) wishes to determine the proportion of new tires that will fail when subjected to hard braking at a speed of 60 miles per hour. NHTSA can obtain the tires for $25 (wholesale price) each. Suppose the budget for the experiment is $10,000, and NHSTA wishes to estimate the percentage that will fail to within .02 with 95% confidence. Assuming that the entire $10,000 can be spend on tires (ignoring other costs) and that the true fraction that will fail is approximately .05, can NHSTA attain its goal while staying within the budget? Explain.

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Solution: The solution consists of 2 pages
Deliverables: Word Document

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