Chapter 9.5, Problem 42E

According to the University of Nevada Center for Logistics Management, 6% of all merchandise sold in the United States gets returned. A Houston department store sampled 80 items sold in January and found that 12 of the items were returned.

1. a. Construct a point estimate of the proportion of items returned for the population of sales transactions at the Houston store.
2. b. Construct a 95% confidence interval for the proportion of returns at the Houston store.
3. c. Is the proportion of returns at the Houston store significantly different from the returns for the nation as a whole? Provide statistical support for your answer.