A program was created to randomly choose customers at a clothing store to receive a discount. The program claims 22% of the receipts will get a discount in the long
run. The owner of the clothing store is skeptical and believes the program's
calculations are incorrect. He selects a random sample and finds that 17% received
the discount. The confidence interval is 0.17 + 0.05 with all conditions for inference
met.
Part A: Using the given confidence interval, is it statistically evident that the program
is not working? Explain. (3 points)
Part B: Is it statistically evident from the confidence interval that the program
creates the discount with a 0.22 probability? Explain. (2 points)
Part C: Another random sample of receipts is taken. This sample is five times the size
of the original. Seventeen percent of the receipts in the second sample received the
discount. What is the value of margin of error based on the second sample with the
same confidence level as the original interval? (2 points)