Answer:
No, the on-time rate of 74% is not correct.
Solution:
As per the question:
Sample size, n = 60
The proportion of the population, P' = 74% = 0.74
q' = 1 - 0.74 = 0.26
We need to find the probability that out of 60 trains, 38 or lesser trains arrive on time.
Now,
The proportion of the given sample, p =
Therefore, the probability is given by:
P
P
Therefore, Probability of the 38 or lesser trains out of 60 trains to be on time is 0.0298 or 2.98 %
Thus the on-time rate of 74% is incorrect.