In: Statistics and Probability
A manufacturing company produces water filters for home refrigerators. The process has typically produced some defective liters. A random sample of 300 liters yielded 12 defects. Construct and interpret a 90% confidence interval for the true proportion of defective water liters.
We have given here,
x=12
n=300
Estimate for sample proportion
Level of significance is =1-0.90=0.1
Z critical value(using Z table)=1.645
We are 90% confident that the true proportion of defective water liters is between 0.0214 to 0.0586