A mail-order company has two warehouses, one on the West Coast and the
second on the East Coast. The company’s policy is to mail all orders placed with it
within 72 hours. The company’s quality control department checks quite often
whether or not this policy is maintained at the two warehouses. A recently taken
sample of 400 orders placed with the warehouss on the West Coast showed that
364 of them were mailed withnin 72 hours. Another sample of 300 orders placed
with the warehouse on the East Coast showed that 279 of them were mailed
within 72 hours.
a) Construct a 97% confidence interval for the difference between the
proportions of all orders placed at the two warehouses that are mailed within 72
hours.
b) Using a 2.5 % significance level, can you conclude that the proportion of all
orders placed at the warehouse on the West Coast that are mailed within 72
hours is lower than the corresponding proportion for the warehouse on the East
Coast?
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