The question is incomplete! Complete question along with answer and step by step explanation is provided below.
Question:
Supplier claims that they are 95% confident that their products will be in the interval of 20.45 to 21.05. You take samples and find that the 95% confidence interval of what they are sending is 20.48 to 21.02. What conclusion can be made?
The supplier products have a lower mean than claimed
The supplier is more accurate than they claimed
The supplier products have a higher mean than claimed
The supplier is less accurate than they have claimed
Answer:
The margin of error reported by the supplier is greater as compared to the actual margin of error. A greater margin of error results in less accuracy.
Therefore, we can conclude that the supplier is less accurate than they have claimed.
Explanation:
Supplier claims that they are 95% confident that their products will be in the interval of 20.45 to 21.05.
The mean is given by
Mean = (Upper limit + Lower limit)/2
Mean = (21.05 + 20.45)/2
Mean = (41.50)/2
Mean = 20.75
The margin of error in this case is
MoE = Upper limit - Mean
MoE = 21.05 - 20.75
MoE = 0.30
You take samples and find that the 95% confidence interval of what they are sending is 20.48 to 21.02.
The mean is given by
Mean = (Upper limit + Lower limit)/2
Mean = (21.02 + 20.48)/2
Mean = (41.50)/2
Mean = 20.75
The margin of error in this case is
MoE = Upper limit - Mean
MoE = 21.02 - 20.75
MoE = 0.27
As you can notice the margin of error reported by the supplier is greater as compared to the actual margin of error. A greater margin of error results in less accuracy.
Therefore, we can conclude that the supplier is less accurate than they have claimed.