Question
To increase business, the owner of a restaurant is running a promotion in which a customer's bill can be randomly selected to receive a discount.
To increase business, the owner of a restaurant is running a promotion in which a customer's bill can be randomly selected to receive a discount. When a customer's bill is printed, a program in the cash register randomly determines 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, giving 15 percent of the bills a discount in the long run. However, the owner is concerned that the program has a mistake that results in the program not generating the intended long-run proportion of 0.15. The owner selected a random sample of bills and found that only 10 percent of them received discounts. A confidence interval for , the proportion of bills that will receive a discount in the long run, is 0.10 0.07. Assume all conditions for inference were met.
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