## Related questions with answers

The mishandling of a shipping container loaded with 750 cases of wine caused some of the bottles to break. An insurance adjuster proposed to settle the claim at $20.8 \%$ of the value of the shipment. based on a random 250-bottle sample in which 52 were cracked or broken. Calculate

(a) the relative standard deviation of the adjuster's evaluation.

(b) the absolute standard deviation for the 750 cases (12 bottles per case).

(c) the $90 \%$ confidence interval for the total number of bottles,

(d) the size of a random sampling needed for a relative standard deviation of $5.0 \%$, assuming a breakage rate of about $21 \%$.

Solutions

Verified750 wine bottle cases were mishandled by a shipping company and some of the bottles broke. The insurance company offered to settle the claim at 20.8% of the value of the shipment. The probability of the bottles to break is 52 of a 250 random wine bottles sample.

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