The Red Lobster restaurant chain regularly surveys its customers. On the basis of these surveys, the management of the chain claims that 75% of its customers rate the food as excellent.
A consumer testing service wants to examine the claim by asking 460 customers to rate the food. What is the probability that less than 70% of customers rate the food as being excellent?
Develop a 99 percent confidence interval over the value of the population proportion of customers who view the food as being excellent. Can the claim be justified based on this evidence at the 1 percent significance level?
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