Problem

In a study of the accuracy of fast food drive-through orders, Restaurant A had 242 accurate orders and 53 that were not accurate. a. Construct a $90 \%$ confidence interval estimate of the percentage of orders that are not accurate. b. Compare the results from part (a) to this $90 \%$ confidence interval for the percentage of orders that are not accurate at Restaurant $B: 0.156

Solution

Step 1 :Given that Restaurant A had 242 accurate orders and 53 that were not accurate, the total number of orders is \(242 + 53 = 295\).

Step 2 :The sample proportion \(\hat{p}\) is calculated as the number of inaccurate orders divided by the total number of orders, which is \(\frac{53}{295} = 0.180\).

Step 3 :To construct a 90% confidence interval for the proportion of inaccurate orders, we use the formula for the confidence interval for a proportion, which is \(\hat{p} \pm Z*\sqrt{\frac{\hat{p}(1-\hat{p})}{n}}\), where \(\hat{p}\) is the sample proportion, \(Z*\) is the Z-score for the desired confidence level (for 90% confidence level, \(Z*\) is approximately 1.645), and \(n\) is the sample size.

Step 4 :Substituting the values into the formula, we get \(0.180 \pm 1.645*\sqrt{\frac{0.180*(1-0.180)}{295}}\).

Step 5 :Calculating the above expression, we get the 90% confidence interval for the proportion of inaccurate orders at Restaurant A as approximately \(0.143\) to \(0.216\).

Step 6 :Given that the 90% confidence interval for the proportion of inaccurate orders at Restaurant B is \(0.156\) to \(0.236\), we see that this interval overlaps with the confidence interval for Restaurant A (\(0.143\) to \(0.216\)).

Step 7 :Since the confidence intervals overlap, we cannot conclude that there is a significant difference between the proportions of inaccurate orders at the two restaurants.

Step 8 :\(\boxed{\text{Final Answer:}}\)

Step 9 :a. The 90% confidence interval for the proportion of inaccurate orders at Restaurant A is approximately \(0.143\) to \(0.216\).

Step 10 :b. Based on the comparison of the 90% confidence intervals for the proportions of inaccurate orders at Restaurant A and Restaurant B, we cannot conclude that there is a significant difference between the two restaurants.

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