SOLUTION: The Web-based company "Oh Baby! Gifts" has a goal of processing 95 percent of its orders on the same day they are recived. If 485 out of the next 500 orders are process on the same

Algebra ->  Algebra  -> Probability-and-statistics -> SOLUTION: The Web-based company "Oh Baby! Gifts" has a goal of processing 95 percent of its orders on the same day they are recived. If 485 out of the next 500 orders are process on the same      Log On

Ad: Algebrator™ solves your algebra problems and provides step-by-step explanations!
Ad: Algebra Solved!™: algebra software solves algebra homework problems with step-by-step help!

   

Question 147462: The Web-based company "Oh Baby! Gifts" has a goal of processing 95 percent of its orders on the same day they are recived. If 485 out of the next 500 orders are process on the same day, would this prove that they are exceeding their goal, using standard deviation of .025?
Answer by stanbon(48568) About Me  (Show Source):
You can put this solution on YOUR website!
The Web-based company "Oh Baby! Gifts" has a goal of processing 95 percent of its orders on the same day they are recived. If 485 out of the next 500 orders are process on the same day, would this prove that they are exceeding their goal, using standard deviation of .025?
-----------------
Ho: p = 0.95
Ha: p > 0.95
----------------
p-hat = 485/500 = 0.97
------------
I ran a 1-Prop ZTest to get the following
Test statistic: z = 2.05195...
p-value = 0.0200
---------
Conclucsion:
Since p-value is less than 5%, reject Ho.
They are exceeding their goal.
====================
Cheers,
Stan H.