A manufacturer of band saws wants to estimate the average repair cost per month for the saws he has sold to certain industries. He cannot obtain a repair cost for each saw, but he can obtain the total amount spent for saw repairs and the number of saws owned by each industry. Thus, he decides to use cluster sampling, with each industry as a cluster. The manufacturer selects a simple random sample of n 5 from the N = 96 industries he services. The data on total cost of repairs per industry and number of saws per industry are as given in the following table. Industry Number of saws(m) Total repair cost (y) 1 12 280 14 240 3 3 45 4 15 60 230 month and place a hound on the error O

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A manufacturer of band saws wants to estimate the average repair cost per month for the saws
he has sold to certain industries. He cannot obtain a repair cost for each saw, but he can obtain
the total amount spent for saw repairs and the number of saws owned by each industry. Thus,
he decides to use cluster sampling, with each industry as a cluster. The manufacturer selects a
simple random sample of n = 5 from the N = 96 industries he services. The data on total cost of
repairs per industry and number of saws per industry are as given in the following table.
Industry Number of saws(m) Total repair cost (y)
12
280
14
240
3
3
45
4
60
230
i. Estimate the average repair cost per saw for the past month and place a bound on the error of
estimation [ please write all the needed steps]
ii. The same manufacturer wants to estimate the average repair cost per saw for next month.
How many clusters should he select for his sample if he wants the bound on the error of
estimation to be $2?
TOSHIBA
Transcribed Image Text:A manufacturer of band saws wants to estimate the average repair cost per month for the saws he has sold to certain industries. He cannot obtain a repair cost for each saw, but he can obtain the total amount spent for saw repairs and the number of saws owned by each industry. Thus, he decides to use cluster sampling, with each industry as a cluster. The manufacturer selects a simple random sample of n = 5 from the N = 96 industries he services. The data on total cost of repairs per industry and number of saws per industry are as given in the following table. Industry Number of saws(m) Total repair cost (y) 12 280 14 240 3 3 45 4 60 230 i. Estimate the average repair cost per saw for the past month and place a bound on the error of estimation [ please write all the needed steps] ii. The same manufacturer wants to estimate the average repair cost per saw for next month. How many clusters should he select for his sample if he wants the bound on the error of estimation to be $2? TOSHIBA
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