Suppose that n trials of a binomial experiment result in no successes. According to the "Rule of Three", we have 95% confidence that the true population proportion has an upper bound of 3/n. If a manufacturer randomly selects 17 computers for quality control and finds no defective computers,
What statement can you make by using the rule of three, about the proportion p, of all its computers which are defective?
A) We are $95 \%$ confident that $p$ does not exceed $\frac { 3 } { 17 }$.
B) We are $95 \%$ confident that $\mathrm { p }$ lies between $\frac { 1 } { 17 }$ and $\frac { 3 } { 17 }$.
C) We are $95 \%$ confident that $p$ is greater than $\frac { 3 } { 17 }$.
D) The value of $\mathrm { p }$ cannot be greater than $\frac { 3 } { 17 }$.

Question

Suppose that n trials of a binomial experiment result in no successes. According to the "Rule of Three", we have 95% confidence that the true population proportion has an upper bound of 3/n. If a manufacturer randomly selects 17 computers for quality control and finds no defective computers,
What statement can you make by using the rule of three, about the proportion p, of all its computers which are defective? 
A) We are $95 \%$ confident that $p$ does not exceed $\frac { 3 } { 17 }$.
B) We are $95 \%$ confident that $\mathrm { p }$ lies between $\frac { 1 } { 17 }$ and $\frac { 3 } { 17 }$.
C) We are $95 \%$ confident that $p$ is greater than $\frac { 3 } { 17 }$.
D) The value of $\mathrm { p }$ cannot be greater than $\frac { 3 } { 17 }$.

Quizplus · Accepted Answer

The "Rule of Three" states that if no successes are observed in n trials, the upper bound for the true proportion is 3/n with 95% confidence. Here, n = 17, so the upper bound is 3/17.

Suppose That N Trials of a Binomial Experiment Result in No