1) A mail-order company has two warehouses, one on the West Coast and the

second on the East Coast. The company's policy is to mail all orders placed with it within 72 hours. The company's quality control department checks quite often whether or not this policy is maintained at the two warehouses. A recently taken sample of 400 orders placed with the warehouse on the West Coast showed that 364 of them were mailed within 72 hours. Another sample of 300 orders placed with the warehouse on the East Coast showed that 279 of them were mailed within 72 hours.

Round to 3 decimals.

(a)Construct a 97% confidence interval for the difference between the proportions of all orders placed at the two warehouses that are mailed within 72 hours.

(b)Using a 2.5% significance level, can you conclude that the proportion of all orders placed at the warehouse on the West Coast that are mailed within 72 hours is lower than the corresponding proportion for the warehouse on the East Coast? Show usingboththe p-value and the critical value approaches.