Question

The internal auditing staff of a local manufacturing company performs a sample audit each quarter to...

The internal auditing staff of a local manufacturing company performs a sample audit each quarter to estimate the proportion of accounts that are delinquent (more than 90 days overdue). For this quarter, the auditing staff randomly selected 400 customer accounts and found that 80 of these accounts were delinquent. What is the 99% confidence interval for the proportion of all delinquent customer accounts at this manufacturing company?

A. .1608 to .2392

B. .1992 to .2008

C. .1671 to .2329

D. .1485 to .2515

E. .1714 to .2286

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution :

Given that,

Point estimate = sample proportion = = x / n = 80 / 400 = 0.200

1 - = 1 - 0.200 = 0.8

Z/2 = 2.576

Margin of error = E = Z / 2 * (( * (1 - )) / n)

= 2.576 * (((0.200 * 0.8) / 400)

Margin of error = E = 0.0515

A 99% confidence interval for population proportion p is ,

- E < p < + E

0.200 - 0.0515 < p < 0.200 + 0.0515

0.1485 < p < 0.2515

The 99% confidence interval for the population proportion p is : 0.1485 to 0.2515

option D. is correct

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The internal auditing staff of a local manufacturing company performs a sample audit each quarter to...
The internal auditing staff of a local manufacturing company performs a sample audit each quarter to estimate the proportion of accounts that are delinquent more than 90 days overdue. The historical records of the company show that over the past 8 years 14 percent of the accounts are delinquent. For this quarter, the auditing staff randomly selected 250 customer accounts. What is the probability that at least 50 accounts will be classified as delinquent? Round your answer to four decimal...
The internal auditing staff of a local manufacturing company performs a sample audit each quarter to...
The internal auditing staff of a local manufacturing company performs a sample audit each quarter to estimate the proportion of accounts that are more than 90 days overdue (delinquent). The historical records of the company show that over the past 8 years, the average has been that 13 percent of the accounts have been delinquent. For this quarter, the auditing staff randomly selected 250 customer accounts. What are the mean and the standard deviation of the sampling distribution of ?...
The internal auditing staff of a local manufacturing company performs a sample audit each quarter to...
The internal auditing staff of a local manufacturing company performs a sample audit each quarter to estimate the proportion of accounts that are current (between 0 and 60 days after billing). The historical records show that over the past 8 years 70 percent of the accounts have been current. Determine the sample size needed in order to be 95% confident that the sample proportion of the current customer accounts is within .03 of the true proportion of all current accounts...
3. If a population distribution is known to be normal, then it follows that: A. The...
3. If a population distribution is known to be normal, then it follows that: A. The sample mean must equal the population mean B. The sample mean must equal the population mean for large samples C. The sample standard deviation must equal the population standard deviation D. All of the above E. None of the above 4. The internal auditing staff of a local manufacturing company performs a sample audit each quarter to estimate the proportion of accounts that are...
Question #4: In a survey of 1,000 people, 420 are opposed to an income tax increase....
Question #4: In a survey of 1,000 people, 420 are opposed to an income tax increase. Construct a 95% confidence interval for the proportion of people in the population opposed to this tax increase. Interpret your result. The internal auditing staff of a local lawn-service company performs a sample audit each quarter to estimate the proportion of accounts that are current (between 0 and 60 days after billing). The historical records show that over the past 8 years 70 percent...
Telly Baker Accountants, Inc. performs auditing for several manufacturing firms in the U.S. midwest. The head...
Telly Baker Accountants, Inc. performs auditing for several manufacturing firms in the U.S. midwest. The head of the audit department, Ken Uad is concerned about clerical errors in the work and estimates that more than 20% of the audits contain clerical errors. A random sample of 400 audits was taken and 100 were found to contain at least one clerical error. Do these data support Ken’s belief that the proportion of errors is more than 20%? Perform the appropriate hypothesis...
INTRODUCTION TO AUDITING ALCHEMY Auditing Alchemy (AA) is a privately-held manufacturing company established in 1998. AA...
INTRODUCTION TO AUDITING ALCHEMY Auditing Alchemy (AA) is a privately-held manufacturing company established in 1998. AA manufactures spheres that are used in a variety of industrial applications. AA is the top sphere producer in the industry and also sells spheres to the U.S. government and other aerospace contracts. The spheres are sold in two forms: green and gold. A third form of sphere, red, is also a by-product of the manufacturing process. Although it is not publicly traded, AA has...
Adam is an auditor of Excellent & Partners for Colourful Facemasks Sdn Bhd. The company has...
Adam is an auditor of Excellent & Partners for Colourful Facemasks Sdn Bhd. The company has just appointed Excellent & Partners as its auditor for the current year. Adam is in charge of auditing the sales and collection cycle for the company which is a small facemask distributor in Peninsular Malaysia. (Background) (The company has been growing rapidly and is respected for its high quality facemasks products. Adam found that the client has made some misstatements in previous year audit...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT