Confidence interval based on random drug testing


As a condition of employment, Fashion Industries applicants should pass drug test. Of the last 220 applicants 14 failed the test. Make a 99 percent confidence interval for proportion of applicants that fail the test. Would it be reasonable to conclude that more than ten percent of applicants are now failing the test? In addition to testing of applicants, Fashion Industries randomly tests its employees during the year. Last year in the 400 random tests conducted, 14 employees failed the test.  Would it be reasonable to conclude that less than five percent of the employees aren't capable to pass random drug test?

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Basic Statistics: Confidence interval based on random drug testing
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