Question

A financial officer for a company wants to estimate the percent of accounts receivable that are more than 30 days overdue. He surveys 500 accounts and finds that 300 are more

than 30 days overdue.

(a) [1] Give a point estimate of the proportion of all accounts receivable that are more than 30 days overdue.

(b) [1] Verify that the sample is sufficiently large to construct a confidence interval for the population proportion.

(c) [1] Construct a 96% confidence interval for the proportion of all accounts receivable that are more than 30 days overdue.

(d) [1] Interpret the result in part (c).

The financial officer believes that the proportion of accounts receivable that are more than 30 days overdue is greater than 55%. Perform a hypothesis test to determine whether

there is sufficient evidence, at the 5% significance level, to support this financial officer’s belief.

(e) [1] State the null and alternative hypotheses.

(f) [1] Compute the test statistic value.

(g) [1] Find the corresponding p-value.

(h) [1] Make the decision according to (g).

(i) [1] Give the conclusion by the decision made from (h).

Answer 1

Please let me know if you have any doubts. Happy to help.Please thumbs up if you like the solution. Thanks