Statistics Testing - Customers favoring underground installation by ClassOf1

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									              Sub: Statistics                                                                                  Topic: Testing



              Question:
              Test the proportion of customers favoring underground installation is more
              than 60%.
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              A telephone company is trying to decide whether some new lines in a large community
              should be installed underground. Because a small surcharge will be added to the phone bills
              to pay for the extra installation costs the company has decided to survey customers and
              proceed only if the survey strongly indicates that more than 60% of all customers favor
              underground installation. In a random sample of 160 customers, 115 favor underground
              installation in spite of the surcharge.

              -Construct a 99% confidence interval for the proportion of customers favoring underground
              installation.




              Solution:
              Given that, x : number of customers favoring underground installation = 115

              And n : sample size = 160.

                         x    115
                  ˆ
              So, p                   0.71875.

								
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