3. A certain change in a process for manufacture of component parts is being considered. Samples are taken using both the existing and the new procedure so as to determine if the new process results...

Extracted text: 3. A certain change in a process for manufacture of component parts is being considered. Samples are taken using both the existing and the new procedure so as to determine if the new process results in an improvement. If 75 of 1500 items from the existing procedure were found to be defective and 80 of 2000 items from the new procedure were found to be defective, a. What is the value of the point estimate? b. Find a 90% confidence interval for the true difference in the fraction of defectives between the existing and the new process. c. At 0.05 level of significance, test the hypothesis that the new procedure is much better than the existing one.