Wal-Mart conducted a study to check the accuracy of checkout scanners at its stores. At each of the 60 randomly selected Wal-Mart stores, 100 random items were scanned. The researchers found that 52 of the 60 stores had more than 2 items that were priced inaccurately (the national standards allow a maximum of 2 items out of 100 items priced accurately by the scanners). a) Construct a 95% confidence interval for proportion of Wal-Mart stores that have more than 2 items priced inaccurately per 100 items scanned and give a practical interpretation of this interval. (3 Points) b) Wal-Mart claims that 99% of its stores comply with the national standard on accuracy of price scanners. Comment on the believability of Wal-Mart’s claim based on your results in part (a). (1 Point) c) Determine the number of Wal-Mart stores that must be sampled in order to estimate the true proportion to within 0.05 with 90% confidence. (3 Points)

a

The 95% confidence interval is

Generally the interval above can interpreted as

    There is 95% confidence that the true proportion of Wal-Mart stores that have more than 2 items priced inaccurately per 100 items scanned lie within the interval  

b

  Generally  99% is outside the interval obtained in a  above then the claim of Wal-mart is not believable  

c

Step-by-step explanation:

From the question we are told that

    The sample size is  n =  60  

    The number of stores that had more than 2 items price incorrectly is  k =  52  

Generally the sample proportion is mathematically represented as  

=>          

=>          

From the question we are told the confidence level is  95% , hence the level of significance is    

=>  

Generally from the normal distribution table the critical value  of   is  

Generally the margin of error is mathematically represented as  

=>  

=>  

Generally 95% confidence interval is mathematically represented as  

=>    

=>    

Generally the interval above can interpreted as

    There is 95% confidence that the true proportion of Wal-Mart stores that have more than 2 items priced inaccurately per 100 items scanned lie within the interval  

Considering question b

Generally  99% is outside the interval obtained in a  above then the claim of Wal-mart is not believable  

Considering question c

From the question we are told that

    The margin of error is  E = 0.05

From the question we are told the confidence level is  95% , hence the level of significance is    

=>  

Generally from the normal distribution table the critical value  of   is  

Generally the sample size is mathematically represented as  

=>

=>    

6 (3) - 4 + 32

hope this