# SOLUTION: A company’s CEO wanted to estimate the percentage of defective product per shipment. In a sample containing 400 products, he found 25 defective products. (a) Find a 95% confi

Algebra ->  Algebra  -> Probability-and-statistics -> SOLUTION: A company’s CEO wanted to estimate the percentage of defective product per shipment. In a sample containing 400 products, he found 25 defective products. (a) Find a 95% confi      Log On

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 Question 576665: A company’s CEO wanted to estimate the percentage of defective product per shipment. In a sample containing 400 products, he found 25 defective products. (a) Find a 95% confidence interval for the true proportion of defective product. Show your calculations and/or explain the process used to obtain the interval. (b) Interpret this confidence interval and write a sentence that explains it.Answer by stanbon(57418)   (Show Source): You can put this solution on YOUR website!A company’s CEO wanted to estimate the percentage of defective product per shipment. In a sample containing 400 products, he found 25 defective products. ------- (a) Find a 95% confidence interval for the true proportion of defective product. Show your calculations and/or explain the process used to obtain the interval. p-hat = 25/400 = 0.0625 ---- ME = 1.96*sqrt[0.0625*0.9375/400] = 0.0237 95%CI: 0.0625-0.0237 < p < 0.0625+0.0237 95%CI: 0.0388 < p < 0.0862 ============================================ (b) Interpret this confidence interval and write a sentence that explains it. With 95% confidence we can say that the proportion of defective products is between 3.88% and 8.62% ================================ Cheers, Stan H. ================================