/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q 45. On-time shipping A mail-order co... [FREE SOLUTION] | 91Ó°ÊÓ

91Ó°ÊÓ

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.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91Ó°ÊÓ!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

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.
  2. 72%is a population and 78%is a sample.
  3. 78%is a parameter and 72%is a statistic.
  4. 72%is a parameter and 78%is a statistic.
  5. 72%is a parameter and 100is a statistic.

The student newspaper at a large university asks an SRS of 250 undergraduates, "Do you favor eliminating the carnival from the term-end celebration?" All in all, 150 of the 250 are in favor. Suppose that (unknown to you) 55\% of all undergraduates favor eliminating the carnival. If you took a very large number of SRSs of size n=250 n=250 from this population, the sampling distribution of the sample proportion p∧p^would be

a. exactly Normal with mean 0.55 and standard deviation 0.03.

b. approximately Normal with mean 0.55 and standard deviation 0.03.

c. exactly Normal with mean 0.60 and standard deviation 0.03.

d. approximately Normal with mean 0.60 and standard deviation 0.03.

e. heavily skewed with mean 0.55 and standard deviation 0.03.

Unemployment Each month, the Current Population Survey interviews about 60,000 randomly selected U.S. adults. One of their goals is to estimate the national unemployment rate. In October 2016,4.9% of those interviewed were unemployed.

The number of undergraduates at Johns Hopkins University is approximately 2000 , while the number at Ohio State University is approximately 60,000. At both schools, a simple random sample of about 3%of the undergraduates is taken. Each sample is used to estimate the proportion p of all students at that university who own an iPod. Suppose that, in fact, p=0.80 at both schools. Which of the following is the best conclusion?

a. We expect that the estimate from Johns Hopkins will be closer to the truth than the estimate from Ohio State because it comes from a smaller population.

b. We expect that the estimate from Johns Hopkins will be closer to the truth than the estimate from Ohio State because it is based on a smaller sample size.

c. We expect that the estimate from Ohio State will be closer to the truth than the estimate from Johns Hopkins because it comes from a larger population.

d. We expect that the estimate from Ohio State will be closer to the truth than the estimate from Johns Hopkins because it is based on a larger sample size.

e. We expect that the estimate from Johns Hopkins will be about the same distance from the truth as the estimate from Ohio State because both samples are 3 % of their populations.

What does the CLT say? Asked what the central limit theorem says, a student replies, "As you take larger and larger samples from a population, the histogram of the sample values looks more and more Normal." Is the student right? Explain your answer.

See all solutions

Recommended explanations on Math Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.