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In: Statistics and Probability

The U.S. Postal Service (USPS) has used optical character recognition (OCR) since the mid-1960s. In 1983,...

  1. The U.S. Postal Service (USPS) has used optical character recognition (OCR) since the mid-1960s. In 1983, USPS began deploying the technology to major post offices throughout the country (www.britannica.com). Suppose that in a random sample of 500 handwritten zip code digits, 466 were read correctly.

Note: Optical Character Recognition, or OCR, is a technology that enables you to convert different types of documents, such as scanned paper documents, PDF files or images captured by a digital camera into editable and searchable data.

Source: Montgomery, D. & Runger, G. (2014). Applied Statistics and Probability for Engineers. 6th edition, Hoboken, NJ: Wiley.

Using RStudio, construct and interpret a 95% confidence interval for the true proportion of correct digits that can be automatically read by OCR technology in USPS.

  1. Label the parameter. (4 points)

  1. Propose an appropriate confidence interval. (4 points)

  1. Verify the required conditions for the proposed confidence interval. (8 points)

  1. Report a 95% confidence interval (simulation base for the true proportion of correct digits that can be automatically read by OCR technology in USPS. Use seed = 45678 and 40,000 trials for simulation: (5 points)

Note: Report CI (3 decimal places):

Note: Attach your R codes in the following space:

 
 
 
 
 
 
 
 
  1. Interpret a 95% confidence interval for the true proportion of correct digits that can be automatically read by OCR technology in USPS in context. (6 points)

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