In: Statistics and Probability
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 211 accurate orders and 73 that were not
accurate.
a. Construct a 95% confidence interval estimate of the percentage
of orders that are not accurate. (Round to three decimal places as
needed.)
b. Compare the results from part (a) to this 95% confidence
interval for the percentage of orders that are not accurate at
Restaurant B: 0.235<p<0.325. What do you conclude?
(a)
n = 211
p = 73/211 = 0.3460
q = 1 - p = 0.6540
SE =
= 0.05
From Table, critical values of Z = 1.96
Confidence Interval:
0.3460 (1.96 X 0.0327)
= 0.3460 0.0642
= ( 0.282 ,0.410)
Confidence Interval:
0.282 < P < 0.410
(b)
Point estimate of the percentage of orders that are not accurate for Restaurant A = 0.3460
Confidence interval of the percentage of orders that are not accurate for Restaurant A = 0.282 < P < 0.410
Point estimate of the percentage of orders that are not accurate for Restaurant B = (0.235 +0.325)/2 = 0.28
Confidence interval of the percentage of orders that are not accurate for Restaurant A = 0.235 < P < 0.325
Even though the Point estimate of Restaurant B is less than Restaurant A , we cannot conclude that the percentage of orders that are not accurate for Restaurant B are less than the percentage of orders that are not accurate for Restaurant A since the Confidence Intervals of both overlap.