As a condition of employment, Fashion Industries applicants must pass a drug tes

Question

As a condition of employment, Fashion Industries applicants must pass a drug test. Of the last 220 applicants 14 failed the test. Develop a 99 percent confidence interval for the proportion of applicants that fail the test. Would it be reasonable to conclude that more than 10 percent of the applicants are now failing the test? In addition to the testing of applicants, Fashion Industries randomly tests its employees throughout the year. . Last year in the 400 random tests conducted, 14 employees failed the test. Would it be reasonable to conclude that less than 5 percent of the employees are not able to pass the random drug test?

Explanation / Answer

14/220= .0636

99% CI is .0636 ±2.576 *.0636*(1-.0636)/220= .0636 ±2.576*.01645= .0636±.0424= (.0212, .106)

Yes it would be reasonable to conclude that more than .10 failed the test, since the CI goes out to .106.

The second one would be done in a similar way, If you want me to do it please post as another question.

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