A program was created to randomly choose customers at a shoestore to receive a discount. The program claims 15% of the receiptswill get a discount in the long run. The manager of the shoe storeis skeptical and believes the program's calculations are incorrect.She selects a random sample and finds that 12% received thediscount. The confidence interval is 0.12 ± 0.05 with allconditions for inference met.
Part A: Using the given confidence interval, is itstatistically evident that the program is not working?Explain.
Part B: Is it statistically evident from theconfidence interval that the program creates the discount with a0.15 probability? Explain.
Part C: Another random sample of receipts istaken. This sample is six times the size of the original. Twelvepercent of the receipts in the second sample received the discount.What is the value of margin of error based on the second samplewith the same confidence level as the original interval?
Part D: Using the margin of error from the secondsample in part C, is the program working as planned? Explain.
