A Company Hopes to Improve Its Engines, Setting a Goal $3 \%$

question 13

Multiple Choice

A company hopes to improve its engines, setting a goal of no more than $3 \%$ of customers using their warranty on defective engine parts. A random survey of 1400 customers found only 30 with complaints. Create a $95 \%$ confidence interval for the true level of warranty users among all customers.

• A) Based on the data, we are \(95 \%\) confident the proportion of warranty users is between \(2.0 \%\) and \(2.9 \%\). Therefore, the company has met its goal.
• B) Based on the data, we are \(95 \%\) confident the proportion of warranty users is between \(1.4 \%\) and \(2.9 \%\). Therefore, the company has met its goal.
• C) Based on the data, we are \(95 \%\) confident the proportion of warranty users is between \(1.4 \%\) and \(3.8 \%\). Therefore, the company has not met its goal.
• D) Based on the data, we are \(95 \%\) confident the proportion of warranty users is between \(1 \%\) and \(3 \%\). Therefore, the company has met its goal.
• E) Based on the data, we are \(95 \%\) confident the proportion of warranty users is between \(0 \%\) and \(2.9 \%\). Therefore, the company has met its goal.

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Definitions:

Personal Standards

Guidelines or principles set by individuals for their behavior and performance expectations.

Cultural Values

The principles and standards shared by a group, which shape behaviors, traditions, and norms within a society.

Corporate Crime

Illegal acts or omissions by a corporation or individuals acting on its behalf, which are detrimental to the public interest or the state.

Ethics Code

A set of guidelines designed to help professionals conduct business honestly and with integrity.