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Mathematics, 03.06.2021 04:40, LouieHBK
To increase business, the owner of a shoe store is running a promotion in which a customer's bill can be selected at random to receive a discount. When a customer's bill is printed, a program in the cash register determines randomly whether the customer will receive a discount on the bill. The program was written to generate a discount with a probability of 0.15; that is, 15% of the bills get a discount in the long run. However, the owner is concerned the program is incorrect and is not generating the intended long-run proportion of 0.15.
The owner selects a random sample of bills and finds that only 12% of them received a discount. A confidence interval for p, the proportion of bills that will receive a discount in the long run, is 0.12 ± 0.05, and all conditions for inference are met.
Consider the confidence interval 0.12 ± 0.05.
Part A: Does the confidence interval provide convincing statistical evidence that the program is not working as intended? Justify your answer. (3 points)
Part B: Does the confidence interval provide convincing statistical evidence that the program generates the discount with a probability of 0.15? Justify your answer. (2 points)
Part C: A second random sample of bills is taken that is six times the size of the original sample. In the second sample, 12% of the bills received the discount. Determine the value of the margin of error based on the second sample of bills used to compute an interval for p with the same confidence level as that of the original interval. (2 points)
Part D: Based on the margin of error in part C that was obtained from the second sample, is the program working as intended? Justify your answer.
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