For this assessment, you will need to use SAS Enterprise Guide or the Excel Calc

Question

For this assessment, you will need to use SAS Enterprise Guide or the Excel Calculators, the latter of which can be found in Resources. SAS users can reference the SAS tutorials located in the third study activity of Unit 1. For this assignment, you will practice applying inferential statistical analysis to two business decision scenarios.

Practical Application Scenario 2

To complete this scenario, use the Sample Size Estimator file provided in Resources. The third shift at the Microsoft's Windows security unit in Redmond, Washington is considering replacing its coffee brewing units with new German-made brewers. As the newest member of this elite Microsoft team, you have been assigned to investigate this proposal. Develop a 99 percent confidence interval for the average yield (cups per pound) for the new German coffee brewer. The margin of error should be no bigger than 0.3 (three tenths of a cup). Based on experience with the current coffee makers, your best guess for the population standard deviation, sigma, is 1.2 cups. How big of a sample do you need? Calculate the estimated sample size needed for the above scenario and communicate your findings to the business manager.

Inputs: Planning Value for P-Star: 0.5 <— Input the appropriate number for your situation. Desired Margin of Error: 0.03 <— Input the appropriate number for your situation. Confidence Level: 0.95 <— Input the appropriate number for your situation. Intermediate Calculations: Z-Multiple: 1.9600 Sigma: 0.25 M.E. Squared: 0.0009 Z-Multiple Squared: 3.841459 Results: Sample Size Needed: 1068 (rounded up to a whole number).

Explanation / Answer

To complete this scenario, use the Sample Size Estimator file provided in Resources. The third shift at the Microsoft's Windows security unit in Redmond, Washington is considering replacing its coffee brewing units with new German-made brewers. As the newest member of this elite Microsoft team, you have been assigned to investigate this proposal. Develop a 99 percent confidence interval for the average yield (cups per pound) for the new German coffee brewer. The margin of error should be no bigger than 0.3 (three tenths of a cup). Based on experience with the current coffee makers, your best guess for the population standard deviation, sigma, is 1.2 cups. How big of a sample do you need? Calculate the estimated sample size needed for the above scenario and communicate your findings to the business manager.

Sample size

For 99%, z=2.576

d=0.3

sd=1.2

Sample size = (z2*s2)/d2

= (2.5762*1.22)/0.32

=106.17

The sample size required=107

Sample Size Determination

Data

Population Standard Deviation

1.2

Sampling Error

0.3

Confidence Level

99%

Intemediate Calculations

Z Value

2.576

Calculated Sample Size

106.1583

Result

Sample Size Needed

107.0000

Sample Size Determination

Data

Population Standard Deviation

1.2

Sampling Error

0.3

Confidence Level

99%

Intemediate Calculations

Z Value

2.576

Calculated Sample Size

106.1583

Result

Sample Size Needed

107.0000

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