Find and Interpret the Confidence Interval

question 11

Multiple Choice

Find and interpret the confidence interval.
-One division of a large defense contractor manufactures telecommunication
Equipment for the military. This division reports that 12% of non-electrical components
Are reworked. Management wants to determine if this percentage is the same as the
Percentage rework for the company's electrical components. The Quality Control
Department plans to check a random sample of the over 10,000 electrical components
Manufactured across all divisions. The 95% confidence interval based on this data is
) 0758 to .1339. Should management conclude that the percentage of rework for
Electrical components is lower than the rate of 12% for non-electrical components?

• A) Yes, because the lower limit of the confidence interval is 7.6%.
• B) Yes, because 12% is contained with the 95% confidence interval.
• C) No, because 12% is contained with the 95% confidence interval.
• D) No, because the upper limit of the confidence interval is 13.4%.
• E) None of the above.

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Definitions:

Shareholders' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the ownership stake of the shareholders.

Net Income

The total profit or loss of a business after all expenses, including taxes and interest, have been subtracted from total revenue.

Deferred Revenue

Money received by a company for goods or services which have not yet been delivered or provided, recognized as a liability.

Season Tickets

Tickets sold for a set number of pre-determined events, commonly used for sporting events, theater performances, and concerts, often offering a price advantage over single-event purchases.