In: Statistics and Probability
In a study of the accuracy of fast food drive-through orders, Restaurant A had 211 accurate orders and 56 that were not accurate.
a. Construct a 90% confidence interval estimate of the percentage of orders that are not accurate.
b. Compare the results from part (a) to this 90% confidence interval for the percentage of orders that are not accurate at Restaurant B: 0.188<p<0.271
Solution:
a) Given that,
n = 211
x = 56
Point estimate = sample proportion = = x / n = 56/211=0.2654
1 - = 1-0.307 =0.7346
At 90% confidence level
= 1 - 90%
= 1 - 0.90 =0.10
/2
= 0.05
Z/2
= Z0.05 = 1.645 ( Using z table )
Margin of error = E Z/2 *(( * (1 - )) / n)
= 1.645 *((0.2654*0.7346) /211 )
E = 0.05
A 90% confidence interval is ,
- E < p < + E
0.2654-0.05< p < 0.2654+0.05
0.2154< p < 0.3154
(0.2154 , 0.3154)
b) Restaurant B:
0.188<p<0.271
The range of the both confidence interval Restaurant A and B are almost equal.