The percent defective for parts produced by a manufacturing process is targeted at 4%. The process is monitored daily by taking samples of sizes n = 160 units. Suppose that today’s sample contains 14 defectives. Determine a 88% confidence interval for the proportion defective for the process today. Place your LOWER limit, rounded to 3 decimal places, in the first blank. For example, 0.123 would be a legitimate answer. Place your UPPER limit, rounded to 3 decimal places, in the second blank. For example, 0.345 would be a legitimate entry.

In a sample with a number n of people surveyed with a probability of a success of [tex]\pi[/tex], and a confidence level of [tex]1-\alpha[/tex], we have the following confidence interval of proportions.

[tex]\pi \pm z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

In which

z is the zscore that has a pvalue of [tex]1 - \frac{\alpha}{2}[/tex].

For this problem, we have that:

[tex]n = 160, \pi = \frac{14}{160} = 0.088[/tex]

88% confidence level

So [tex]\alpha = 0.12[/tex], z is the value of Z that has a pvalue of [tex]1 - \frac{0.12}{2} = 0.94[/tex], so [tex]Z = 1.555[/tex].

The lower limit of this interval is:

[tex]\pi - z\sqrt{\frac{\pi(1-\pi)}{n}} = 0.088 - 1.555\sqrt{\frac{0.088*0.912}{160}} = 0.053[/tex]

The upper limit of this interval is:

[tex]\pi + z\sqrt{\frac{\pi(1-\pi)}{n}} = 0.088 + 1.555\sqrt{\frac{0.088*0.912}{160}} = 0.123[/tex]

The 88% confidence interval for the proportion of defectives today is (0.053, 0.123)