Find and Interpret the Confidence Interval

question 6

Multiple Choice

Find and interpret the confidence interval.
-Automobile mechanics conduct diagnostic tests on 150 new cars of particular make
And model to determine the extent to which they are affected by a recent recall due to
Faulty catalytic converters. They find that 42 of the new cars tested do have faulty
Catalytic converters. The 99% confidence interval for the true proportion of new cars
With faulty catalytic converters is

• A) 0.1856 to 0.3744
• B) 0.2434 to 0.3166
• C) 0.2081 to 0.3519
• D) 0.1660 to 0.3940
• E) 0.1243 to 0.4123

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Definitions:

Collection Delay

The time lag between when a sale is made and when the payment is actually received, affecting cash flow.

Average Amount

The sum of individual amounts divided by the number of amounts, representing a central value or typical amount in a set of data.

Weighted Average Delay

An estimation of the average delay in time, considering the relative importance or weight of each contributing factor.

Collection Delay

The time lag between issuing an invoice and receiving payment, impacting cash flow and liquidity.