Application

Now that you have completed all of the activities in this chapter, use the concepts and techniques that you've learned to respond to these questions.

  1. Scenario: We'll continue our analysis of the pipeline disruption data.

    1. Construct and interpret a 95% confidence interval for the proportion of pipeline disruptions that are classified as ruptures (rather than leaks or something else).

    2. Now construct and interpret a 90% confidence interval for the same parameter (that is, proportion of ruptures).

    3. In a sentence or two explain what happens when we lower the confidence level.

    4. Based on your confidence intervals, would it be credible to conclude that only 15% of all disruptions are caused by ruptures? Explain your reasoning.

  2. Scenario: You live ...

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