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4. During a recent drought, a California water utility sampled 100 residential water bills and found...

4. During a recent drought, a California water utility sampled 100 residential water bills and found that 83 of the residences had reduced their water consumption over that of the previous year.

d) The claim is made that the more than 75% of the residences have reduced their usage. What level of confidence can this statement be made? That is, if ? > 0.75was a lower confidence interval, what would the level 100(1 − ?)% coverage be?

e) If a 95% confidence interval is constructed for 200 locations, what is the probability that more than 192 of the confidence intervals cover (include) the correct proportions?

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