One Division of a Large Defense Contractor Manufactures Telecommunication Equipment

Multiple Choice

One division of a large defense contractor manufactures telecommunication equipment for the military.This division reports that 12% of non-electrical components are reworked.Management wants to determine if this percentage is the same as the percentage rework for the company's electrical components.The Quality Control Department plans to check a random sample of the over 10,000 electrical components manufactured across all divisions.The 95% confidence interval based on this data is .0758 to .1339.Should management conclude that the percentage of rework for electrical components is lower than the rate of 12% for non-electrical components?

A) Yes, because the lower limit of the confidence interval is 7.6%.
B) Yes, because 12% is contained with the 95% confidence interval.
C) No, because 12% is contained with the 95% confidence interval.
D) No, because the upper limit of the confidence interval is 13.4%.
E) None of the above.