Q:

As a condition of employment, Fashion Industries applicants must pass a drug test. Of the

last 220 applicants 14 failed the test. Develop a 99 percent confidence interval for the proportion

of applicants that fail the test. Would it be reasonable to conclude that more than

10 percent of the applicants are now failing the test? In addition to the testing of applicants,

Fashion Industries randomly tests its employees throughout the year. Last year in the 400

random tests conducted, 14 employees failed the test. Would it be reasonable to conclude

that less than 5 percent of the employees are not able to pass the random drug test?

 

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