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According to the University of Nevada Center for Logistics Management, 6% of all merchandise sold in the United States gets returned (BusinessWeek, January 15, 2007). A Houston department store sampled 80 items sold in January and found that 12 of the items were returned.
a. Construct a point estimate of the proportion of items returned for the population of sales transactions at the Houston store.
b. Construct a 95% confidence interval for the porportion of returns at the Houston store.
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.
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