Exercise 9-47 As a condition of employment, Fashion Industries applicants must p

Question

Exercise 9-47 As a condition of employment, Fashion Industries applicants must pass a drug test. Fashion Industries randomly tests its employees throughout the year. Last year in the 460 random tests conducted, 28 employees failed the test. (1) Develop a 95 percent confidence interval for the proportion of employees that fail the test. (Round your answers to 3 decimal places.) For the random tests conducted, the confidence interval is and (2)Would it be reasonable to conclude that less than 4 percent of the employees are not able to pass the random drug test? Click to select

Explanation / Answer

Ans:

sample proportion=28/460=0.061

1)z value for 95% CI is 1.96

95% CI for true proportion

=0.061+/-1.96*sqrt(0.061*(1-0.061)/460)

=0.061+/-0.022

=(0.039, 0.083)

2)As,lower limit of CI is less than 0.04,we can conclude that less than 4% of the employees are not able to pass the random drug test.

(Yes)

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