Question

A major grocery store chain is trying to cut down on waste. Currently, they get peaches from two different distributors, Whole Fruits and Green Grocer. Out of a two large shipments, the manager randomly selects items from both suppliers and counts the number of items that are not sell-able due to bruising, disease or other problems. She then makes a confidence interval. Is there a significant difference in the quality of the peaches between the two distributors?
95% CI for pW-pG:(0.064, 0.156)

A. We are 95% confident that the proportion of non sell-able items for Whole Fruits is anywhere between 0.064 and 0.156 LOWER than the proportion of non sell-able items for Green Grocer

B. We are 95% confident that the proportion of non sell-able items for Whole Fruits is anywhere between 0.064 and 0.156 HIGHER than the proportion of non sell-able items for Green Grocer.

C. We are 95% confident that the proportion of non sell-able peaches for Green Grocer is about 0.064 and 0.156.

D. We are 95% confident that the proportion of non sell-able items for Whole Fruits is anywhere between 0.064 LOWER and 0.156 HIGHER than the proportion of non sell-able items for Green Grocer.

E. We are 95% confident that the proportion of non sell-able peaches from Whole Fruits is anywhere between 0.064 and 0.156.

Answer 1

Answer:

Option B is right.

Step-by-step explanation:

Given that A major grocery store chain is trying to cut down on waste. Currently, they get peaches from two different distributors, Whole Fruits and Green Grocer. Out of a two large shipments, the manager randomly selects items from both suppliers and count the number of items that are not sell-able due to bruising, disease or other problems

Confidence interval 95% is (0.064, 0.156) for the difference pw-pg, ie difference in proportions

This means that the difference in the non saleable items due to some reasons is more for pW than for pG this is because lower bound itself is positive 0.074.

B. We are 95% confident that the proportion of non sell-able items for Whole Fruits is anywhere between 0.064 and 0.156 HIGHER than the proportion of non sell-able items for Green Grocer.

is the right answer