You are an inspector for The Official Tequila Standards Bureau. Suppose the proportion of alcohol in Tequila is required to be .40. You sample 100 bottles of Tequila across Little Rock and find a proportion of alcohol to be about .45. (A) Is the Tequila in Little Rock meeting the quality control requirements set by the Tequila Standards Bureau (test using an alpha of 1%). Set up the Null hypothesis, alternative hypothesis and show your test statistic versus the critical statistic  (B) Construct a 99% confidence interval for the proportion of alcohol in the tequila.   (C) What is the probability of getting a bottle of tequila that contains a proportion of alcohol equal to .43 or more?

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Confidence Intervals

When we calculate intervals in probability and statistics, it can be simply termed as finding out a confidence interval. The confidence interval is usually calculated from the data set which is observed. The value of the parameter that needs to be calculated is present here only.