No Failures According to the Rule of Three, when we have a sample size n with x=0 successes, we have 95% confidence that the true population proportion has an upper bound of 3/n. (See “A Look at the Rule of Three,” by Jovanovic and Levy, American Statistician, Vol. 51, No. 2.)
b. In a study of failure rates of computer hard drives, 45 Toshiba model MD04ABA500V hard drives were tested and there were no failures. What is the 95% upper bound for the percentage of failures for the population of all such hard drives?