Confidence Interval and Motorola: How Good is Your Sample?
In business, how can we measure the reliability of the things we create? The only foolproof way to accomplish
this would be to test and analyze every single object produced, which is often impractical, if not impossible.
Instead, we typically measure a small sample of objects and expect that this sample will be a representative of
the entire population.
Any sample that we take for this purpose is only an approximation, and will always contain some amount of
error or uncertainty. However, we can use the concept of confidence intervals to help determine how reliable
we expect our sampling can be, compared to the entire population.
What Does the Confidence Interval Signify?
Sample Solution