Reference no: EM1318502

Q1) As condition employment, Fashion Industries candidates should pass a drug test. Of last 220 applicants 14 failed the test. Create a 99 percent confidence interval for proportion of applicants that fail the test.  Would it be sensible to conclude that more than 10% of candidates are now failing the test? In addition to testing of applicants, a Fashion industry randomly tests its employee all through the year. Last year in 400 random tests conducted, 14 employees failed the test. Would it be reasonable to conclude that less than 5% of employees are not able to pass random drug test?

Q2) Human Relations Department of Electronics, Inc, would like to comprise a dental plan as part of benefits package. Question is: How much do typical employee and his or her family spends per year on dental expenses? Sample of 45 employee reveals mean amount spend last year was $1,820, with standard deviation of $ 660.

a) Create a 95 percent confidence interval for population mean.

b) Information from part (a) was given to president of Electronics, Inc. He points out he could afford $1,700 of dental expenses per employee. Is it possible that population mean could be $1,700? Give explanation for your answer.