In: Statistics and Probability
Solution :
Given that,
n = 336
x = 72
Point estimate = sample proportion = = x / n = 72 / 336 = 0.214
1 - = 1 - 0.214 = 0.786
a)
At 95% confidence level the z is ,
= 1 - 95% = 1 - 0.95 = 0.10
/ 2 = 0.05 / 2 = 0.025
Z/2 = Z 0.025 = 1.96
Margin of error = E = Z / 2 * (( * (1 - )) / n)
= 1.96 * (((0.214*0.786) / 336)
= 0.044
A 95% confidence interval for population proportion p is ,
- E < p < + E
0.214 - 0.044 < p < 0.214 + 0.044
0.170 < p < 0.258
b)
The results from part (a) to this 95% confidence interval for the percentage of orders that are not accurate at Restaurant B: 0.158 < p < 0.231
Therefore, the result of (a) is wider than to this 95% confidence interval for the percentage of orders of restaurant B.