Referring to Exercise 8.46. determine the sample size needed in order to be 99 percent confident that , the sample proportion of ColorSmart-5000 television sets that last at least five years without a single repair, is within a margin of error of .03 of p, the true proportion of sets that last at least five years without a single repair.
In exercise
The manufacturer of the ColorSmart-5000 television set claims 95 percent of its sets last at least five years without needing a single repair. In order to test this claim, a consumer group randomly selects 400 consumers who have owned a ColorSmart-5000 television set for five years. Of these 400 consumers, 316 say their ColorSmart-5000 television sets did not need a repair, whereas 84 say their ColorSmart-5000 television sets did need at least one repair.
a. Find a 99 percent confidence interval for the proportion of all ColorSmart-5000 television sets that have lasted at least five years without needing a single repair.
b. Does this confidence interval provide strong evidence that the percentage of ColorSmart-5000 television sets that last at least five years without a single repair is less than the 95 percent claimed by the manufacturer? Explain.