Question

The timeliness with due dates are met in an important factor maintaining customer satisfaction.A medium size company wants to test whether the proportion of times that it does not meet due dates is less than 6% (0.06). Based on a random sample of 100 customers orders, they found that they missed the due dates 5 times (5/100 = 5% (0.05)). (Use normal-distribution)

1. Find the 95% confidence interval for the proportion p = 0.05
2. Test the hypothesis at a level of significance of alpha = 0.05. What is your conclusion?

Answer 1

Ans:

a)

95% confidence interval for p

=0.05+/-1.96*sqrt(0.05*(1-0.05)/100)

=0.05+/-0.043

=(0.007, 0.093)

b)

As,above confidence interval includes 0.06 within its limits,so,we fail to reject the null hypothesis.

There is not sufficient evidence to conclude that the proportion of times that it does not meet .due dates is less than 6% (0.06)