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U.S. Postal Service鈥檚 performance. The U.S. Postal Service (USPS) reports that 95% of first-class mail within the same city is delivered on time (i.e., within 2 days of the time of mailing). To gauge the USPS performance, Price Waterhouse monitored the delivery of first-class mail items between Dec. 10 and Mar. 3鈥攖he most difficult delivery season due to bad weather conditions and holidays. In a sample of 332,000 items, Price Waterhouse determined that 282,200 were delivered on time. Comment on the performance of USPS first-class mail service over this time period.

Short Answer

Expert verified

The confidence interval is from 0.849 to 0.851.

Hence, the performance of U.S. Postal Service (USPS) first-class mail service over the time period is below the standard during this time period.

Step by step solution

01

Given information

The U.S Postal Service (USPS) reports that 95% of first-class mail within the same city is delivered on time (i.e., within 2 days of the time of mailing).

In a sample of 332000 items, Price Waterhouse determined that 282200 were delivered on time.

02

Finding the 95% confidence interval

The sample proportion is the point estimator of the population proportion p.

Computing the sample proportion is,

p^=Xn=282200332000=0.85

Then the level of1001-% confidence interval for p (proportion) is,

p^z2p^1-p^n

For a 95% confidence interval, the value of2 is,

100(1-)%=95%(1-)=0.95

For,=0.05and2=0.025

The 95% confidence interval is,

p^z2p^1-p^n=0.851.9600.85(1-0.85)332000FromStandardNormalTable=0.851.9600.0006197=0.850.001215=0.848785,0.851215

So, 95% confidence interval that the true population of first-class mail within the same city that is delivered between 0.849 and 0.851, i.e., 84.9% and 85.1%

This interval does not contain the reported 95% of the first-classmail delivered on time.

Hence, the performance of U.S. Postal Service (USPS) first-class mail service over the time period is below the standard during this time period.

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