Question

A computer chip manufacturer tests a random sample of 500 chips in a 4000 lot and...

A computer chip manufacturer tests a random sample of 500 chips in a 4000 lot and finds 32 defective units.
a) Find a 95% confidence interval to estimate the proportion of defective units and calculate the margin of error for your estimate.
b) Find a 95% confidence interval to estimate the total number of defective units and calculate the margin of error for your estimate.

Answers:

a. [0.04393,0.08407], m.e. = 0.02, b. [175,337], m.e. = 81

Homework Answers

Answer #1

a)

The confidence interval for the proportion is obtained using the formula,

Where,

Margin of Error

b)

Considering total number of defective units,

Margin of Error

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