One division of a large defense contractor manufactures telecommunication equipment for the military. This division reports that

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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 0.0758 to 0.1339. Which of the following is the correct interpretation?
a) The percentage of electronic components that are reworked is between 7.6% and 13.4%.
b) None of these.
c) We are 95% confident that between 7.6% and 13.4% of electrical components are reworked.
d) The margin of error for the true percentage of electrical components that are reworked is between 7.6% and 13.4%.
e) All samples of size 450 will yield a percentage of reworked electrical components that falls within 7.6% and 13.4%.
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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