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The ideal output of a particular oil-rig in the Mexican Gulf is at least 2000 barrels per day. If the output is lesser than that, the foreman raises an red flag at the end of the day. Old Joe the Retired Statistician watches from the shore every day. After 28 days, the red flag was raised on 16 of those days. Could Joe conclude that the oil-rig is operating at a non-ideal condition most of the time

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Answer:

Mexican Gulf Output of a Oil-Rig

Based on 57% red flag days, Joe, the retired statistician, who watches from the shore for the red flag every day, cannot conclude that the oil-rig is operating at a non-ideal condition most of the time, but more of the time.

Explanation:

Ideal output of a particular oil-rig, at least = 2,000 barrels per day

When output is lesser than 2,000, a red flag is raised by the foreman

Number of days counted = 28

Number of days when red flag was raised = 16

Proportion of days when the red flag was raised = 16/28

= 0.57

or 57%

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