In anticipating losses from projects running during the pandemic, the company audited the cost overrun of 20 projects with an average time of 3 months (90 days). Based on information from the project audit team, there was a standard deviation in the audit, which was 10 days. a) At the 95% confidence level, can the company complete a project audit in less than 88 days? Explain by calculating the lower limit confidence interval (Lower Limit)! b) If there are only 90 days left until the end of the year, can the company achieve this target with the various uncertainties it faces in convincing the new customer? Explain by calculating the upper limit confidence interval (Upper Limit)! c) If the confidence level is increased to 99%, calculate the lower and upper limit confidence intervals of the population mean number of days to obtain these additional customers? Explain the difference?
In anticipating losses from projects running during the pandemic, the company audited the cost overrun of 20 projects with an average time of 3 months (90 days). Based on information from the project audit team, there was a standard deviation in the audit, which was 10 days.
a) At the 95% confidence level, can the company complete a project audit in less than 88 days? Explain by calculating the lower limit confidence interval (Lower Limit)!
b) If there are only 90 days left until the end of the year, can the company achieve this target with the various uncertainties it faces in convincing the new customer? Explain by calculating the upper limit confidence interval (Upper Limit)!
c) If the confidence level is increased to 99%, calculate the lower and upper limit confidence intervals of the population mean number of days to obtain these additional customers? Explain the difference?
Step by step
Solved in 3 steps
