The City of Berrysville intends to purchase a new computer system. After extensi

Question

The City of Berrysville intends to purchase a new computer system. After extensive search and comparison, the committee responsible for selecting the new system has narrowed the alternatives to two: the Number Cruncher I and the Graphic Design III. Both systems were tested for reliability last year by an independent research firm, which provided the following results to the committee:

36

Based on these data, which computer system should the committee recommend for purchase? Justify your answer.

Computer System # of Breakdowns Mean # of Breakdowns Standard Deviation of Number of breakdowns Number Cruncher I

36

11.4 9.8 Graphic Design III 36 15.2 4.3

Explanation / Answer

95% confidence interval for Number Cruncher I

Standard error of the mean = SEM = S/N = 1.633

t(, N-1) = 2.03

Confidence interval = m +/- (t(, N-1)*SEM)

Mean = 11.4

Lower bound: 8.09

Upper bound: 14.71

95% confidence interval for Number Graphic Design lll

Standard error of the mean = SEM = S/N = 0.717

t(, N-1) = 2.03

Confidence interval = m +/- (t(, N-1)*SEM)

Mean = 15.2

Lower bound: 13.74

Upper bound: 16.66

The committe should recommend Number Cruncher 1 as it has less chances of breaking down within 95% confidence interval

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