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On-time shipping A mail-order company advertises that it ships 90% of its orders within three working days. You select an SRS of 100 of the 5000 orders received in the past week for an audit. The audit reveals that 86 of these orders were shipped on time.

a. If the company really ships 90% of its orders on time, what is the probability that the proportion in an SRS of 100 orders is 0.86 or less?

b. Based on your answer to part (a), is there convincing evidence that less than 90% of all orders from this company are shipped within three working days? Explain your reasoning.

Short Answer

Expert verified

Part (a) 9.18%

Part (b) No.

Step by step solution

01

Part (a) Step 1: Given information

p=90%=0.40p^=0.86n=100

02

Part (a) Step 2: Concept

σp^=p(1−p)nz=x−μσ

03

Part (a) Step 3: Calculation

The sampling distribution of the sample proportions p has a mean of

μp^=p=0.90

The sampling distribution of the sample proportion p has a standard deviation of

σp^=p(1−p)n=0.90(1−0.90)100=0.03

The z-score is

z=x−μσ=0.86−0.900.03=−1.33

The associating probability using the normal probability table in P(Z<−1.33) is given in the standard normal probability table in the row starting with −1.3 and the column starting with 0.03

P(p^>0.86)=P(z>−1.33)=0.0918=9.18%

04

Part (b) Step 1: Calculation

The population proportion p is equal to the mean of the sampling distribution of the sample proportions p^

μp^=p=0.90

The 10% requirement states that the sample size must be less than 10% of the total population size. The ten percent requirement is met because the abundance of 100 orders is less than 10% of the population of all orders in the previous week (there are 5000 orders in the previous week).

σp^=p(1−p)n

=0.90(1−0.90)100=0.03

The square root of the product of p and (1-p) divided by the sample sine n is the standard deviation of the sampling distribution of the sample proportion p

The z-score is

z=x−μσ=0.86−0.900.03=−1.33

In the conventional normal probability table, in the row beginning with -1.3and in the column beginning with.03 the associating probability is given using the normal probability table P(Z<-1.33)

P(P^>0.86)=P(z>−1.33)=0.0918=9.18%

Because the probability is not insignificant, the event is likely to happen by chance, and there is no solid proof that less than 90 percent of all purchases from this company are dispatched within three working days.

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At a particular college, 78%of all students are receiving some kind of financial aid. The school newspaper selects a random sample of 100students and 72%of the respondents say they are receiving some sort of financial aid. Which of the following is true?

  1. 78%is a population and 72%is a sample.
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c. One digit from the random digit table simulates one answer, with odd = correct and even = incorrect. Ten digits from the table simulate 10 answers.

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e. population size is reasonably large (whether the population distribution is known or not).

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