Question

An appliance manufacturer stockpiles washers and dryers in a large warehouse for shipment to retail stores. Sometimes, handling them the appliances get damaged. Even though the damage may be minor, the company must sell those machines at drastically reduced prices. One day an inspector randomly checks 60 washers and finds that 5 of them have scratches or dents. Compute a 95% confidence interval for the proportion of appliances from this manufacturer that get damaged during shipment. 1.96 = Answer the following information specific to this question. a. What is p-hat? b. What is 1 - p-hat? c. What is n?| d. What is the margin of error (C)? e. Find the confidence interval of #1 and write an interpretation in context of the problem.

Answer 1

Answer:

a)

Given,

sample proportion p^ = x/n = 5/60 = 0.0833

b)

1 - p^ = 1 - 0.0833 = 0.9167

c)

sample n = 60

d)

Margin of error E = z*sqrt(p^q^/n)

substitute values

= 1.96*sqrt(0.0833(1-0.0833)/60)

= 0.0699

e)

95% CI = p^ +/- E

substitute values

= 0.0833 +/- 0.0699

= (0.0134 , 0.1532)