A catalog sales company promises to deliver orders placed on the Internet within

Question

A catalog sales company promises to deliver orders placed on the Internet within 3 days. Follow-up calls to a few randomly selected customers show that a 95% confidence interval for the proportion of all orders that arrive on time is 88% plusminus 6%. What does this mean? Are these conclusions correct? Explain. a) Between 82% and 94% of all orders arrive on time. b) 95% of all random samples of customers will show that 88% of orders arrive on time. c) 95% of all random samples of customers will show that 82% to 94% of orders arrive on time. d) We are 95% sure that between 82% and 94% of the orders placed by the sampled customers arrived on time. e) On 95% of the days, between 82% and 94% of the orders will arrive on time.

Explanation / Answer

Correct option: (d) We are 95% sure that between 82% and 94% of the orders placed by the sampled customers arrived on time.

REASON:

By definition, 95% Confidence Interval means : If repeated samples were taken and the 95%condfidence interval were computed,for each sample, 95% of the intervals would contain the population mean. 95% of the population distribution is contained in the Confidence Interval.

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