Question

A large mail order company is trying to decide between two delivery services: Canada Post and a private courier. The mail order company selects a random sample of 100 deliveries for the private courier, and another sample of 75 for Canada Post. The proportion of deliveries that were on time or early when sent by the private courier was 0.89. The proportion of deliveries that were on time or early when sent by Canada Post was 0.80.The mail order company has decided it will pay the higher cost of the private courier, if its on-time or early percentage is more than 5% higher than Canada Post's. Should the mail order company hire the private courier? Use α = 2.5%.


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  • CreatedJuly 12, 2015
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