A company has received a shipment of 900 machines. The 900 machines in this ship

Question

A company has received a shipment of 900 machines. The 900 machines in this shipment are packet in three shipping containers, say containers A, B, and C, with 300 machines in each container. The company needs to decide whether it should keep this shipment or refuse it. They decide to make their decision about accepting or refusing the entire shipment by examining a simple random sample of 50 machines selected from the 300 machines in shipping container A. Each of these 50 machines will be cheeked to determine whether it is functioning properly. What is a unit in this example? Define (describe) an appropriate variable for the indicated objective. Be specific (explain exactly how to determine the value of the variable) and indicate the possible values of the variable. Briefly discuss why basing the decision regarding the acceptability of the entire shipment on this simple random sample from shipping container A is not a good idea. (Notice that this is not a question about the size of the sample.) Recall that the simple random sample of 50 machines is selected from the 300 machines in shipping container A. With tins information in mind, what is the sampled population? In other words, describe the population which the sample of 50 machines provide information about. Define (describe) an appropriate parameter for the sampled population. Define this in words, since time is not enough information to give an actual value. In other words, describe the parameter and how you would compute the value of the parameter if you had access to all of the units in the sampled population. Define (describe) an appropriate statistic. Again define this in words, since there is not enough information to give on actual value. In other words, describe the statistic and how you would compute the value of the statistic once you had access to the units in the sample.

Explanation / Answer

a. Unit of the example is machines to be sampled.

b. Acceptane or rejection of the shipment.

c. This is not right to accept the shipment by simple random sample of entire shipment as simple random sample might generate erroneous machines only which might lead to rejection of the entire shipment.

d. The sampled population is 300 machines.

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