A random sample of 250 widgets at a processing plant is taken. Each observation

Question

A random sample of 250 widgets at a processing plant is taken. Each observation in the sample is tested and classified as either defective of good. Of the 250 widgets, 25 were classified as defective.

Assume that you computed the 99% confidence interval for the true proportion defectives in the plant as (0.0511, 0.1489). If the goal of the plant is to keep a less than 5 percent defect rate, based on this computed confidence interval, which of the following is the correct conclusion?

Select one:

a. The plant is meeting its goal

b. The plant is not meeting its goal

c. Not enough information is given to make a conclusion

Explanation / Answer

as each value in confidence interval is above plant goal of less then 5% defect rate.

therefore option b is correct. The plant is not meeting its goal.

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