SOLUTION: A company’s CEO wanted to estimate the percentage of defective product per shipment. In a sample containing 600 products, he found 45 defective products.
(a) Find a 99% conf
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(a) Find a 99% conf
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Question 575366: A company’s CEO wanted to estimate the percentage of defective product per shipment. In a sample containing 600 products, he found 45 defective products.
(a) Find a 99% 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(75887) (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 600 products, he found 45 defective products.
(a) Find a 99% confidence interval for the true proportion of defective product. Show your calculations and/or explain the process used to obtain the interval.
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p-hat = 45/600 = 0.075
ME = 2.5758*sqrt[0.075*0.9250/600] = 0.0277
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99%CI: 0.075-0.0277 < p < 0.075+0.0277
99%CI: 0.0473 < p < 0.1027
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(b) Interpret this confidence interval and write a sentence that explains it.
We can have 99% confidence that p is between 0.0473 and 0.1027
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Cheers,
Stan H.
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