The GO transportation system of buses and cumuter trains operates on the honor system. Train travers are expected to buy their tickets before boarding the train. Only a small number of people will be checked on the train to see weather they bought a ticket.
A) Suppose that a random sample of 400 train travelers was sampled, and 68 of them had failed to buy a ticket. Estimate with 95% confidence the proportion of all train travelers who do not buy a ticket.
B) Assuming that there are 1 million travelers per year and the fare is $3, estimate with 95% confidence the amount of revenue lost each year.