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
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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