1. A factory manufactures a chip used in constructing central processing units for computers. The
factory's quality control division has set a limit that no more than 2% of the chips can be
defective. They sample 200 computer chips and find that 3 of them are defective. They use this
data to calculate the following 90% confidence interval: (0.001, 0 029). Recommend a strategic
decision for the factory.
(1 point)

O The factory should continue producing the chips using the same process since the confidence interval
shows that the proportion of defective chips could be very close to 0%.

The factory should continue producing the chips using the same process since 3 defective chips out of 200
is 1.5%, which meets the goal of no more than 2% being defective.

The factory should consider revising its production process since there is a 90% chance that 2.9% of their
chips are defective.

The factory should consider revising its production process since the confidence interval shows that the
proportion of defective chips could exceed 2%.