A factory manufactures a chip used in constructing central

Last updated: 8/11/2022

A factory manufactures a chip used in constructing central processing units for computers. The factory's quality control division has set a limit that no more than 2% of the chips can be defective. They sample 200 computer chips and find that 3 of them are defective. They use this data to calculate the following 90% confidence interval: (0.001, 0.029). Recommend a strategic decision for the factory. A. The factory should continue producing the chips using the same process since the confidence interval shows that the proportion of defective chips could be very close to 0%. B. The factory should continue producing the chips using the same process since 3 defective chips out of 200 is 1.5%, which meets the goal of no more than 2% being defective. C. The factory should consider revising its production process since there is a 90% chance that 2.9% of their chips are defective. D. The factory should consider revising its production process since the confidence interval shows that the proportion of defective chips could exceed 2%.