SOLUTION: I'm an online student, please help. A manufacturer claims that at least 99% of all his products meet the minimum government standards. A survey of 500 products revealed ten did

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Question 134849: I'm an online student, please help.
A manufacturer claims that at least 99% of all his products meet the minimum government standards. A survey of 500 products revealed ten did not meet the standard.
Conduct the 5-step hypothesis test … and answer the following:
What is the null hypothesis?
What is the alternate hypothesis?
What is the critical value if a = .01?
What is the z-statistic? ?
What is your decision ?? Do the products meet the government standards?

Answer by stanbon(75887)   (Show Source): You can put this solution on YOUR website!
A manufacturer claims that at least 99% of all his products meet the minimum government standards. A survey of 500 products revealed ten did not meet the standard.
Conduct the 5-step hypothesis test … and answer the following:
What is the null hypothesis?
Ho: p = 0.99
---------------
What is the alternate hypothesis?
Ha: p > 0.99 (Claim)
-----------------
What is the critical value if a = .01?
z = 2.326
------------------------
What is the z-statistic?
p-hat = 490/500 = 0.98
z(0.98) = (0.98-0.99) = -2.2473
---------------------
What is your decision ?? Do the products meet the government standards?
------------------
This is a bit confusing. The stated claim was that the company exceeded
the government standard; we tested that claim and the conclusion is a
rejection of Ho. The test gives strong evidence that p is less than 99%.
-----------------
Now we are asked whether the product meets the government standard. That requires the following testing:
Ho: p=0.99
Ha: p<0.99
This requires a left-tail test.
Critical value is -2.326
P-hat is still 0.98
Test statistic remains - 2.2473
Conclusion: Since test stat is in the rejection interval below
the critical value, reject Ho.
The product does not meet the government standard.
====================
Cheers,
Stan H.

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