Find and Interpret the Confidence Interval

question 15

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 resulting 95% confidence interval based on these
Data is .0758 to .1339. Which of the following is the correct interpretation?

• A) The percentage of electronic components that are reworked is between 7.6% and
• B) We are 95% confident that between 7.6% and 13.4% of electrical components are reworked.
• C) The margin of error for the true percentage of electrical components that are reworked is between 7.6% and 13.4%.
• D) All samples of size 450 will yield a percentage of reworked electrical components that falls within 7.6% and 13.4%.
• E) None of the above.

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Definitions:

Adaptive Cultures

Corporate cultures that are flexible and responsive to changes in the external environment, facilitating innovation and change within the organization.

Stable Value System

Refers to an established and consistent set of beliefs and ethical standards that guide an individual or organization's behavior.

Strong Cultures

The set of shared beliefs and values that strongly influence the behavior of individuals within an organization.

Subcultural Values

The unique values and norms shared by a subgroup within a larger society, often differing or opposing the dominant culture's values.