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

Question 150203: The Web-based company Oh Baby! Gifts has a goal of processing 95 percent of its orders on the same day they are received. If 485 out of the next 500 orders are processed on the same day, would this prove that they are exceeding their goal, using α = .025?
Answer by stanbon(75887) (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 received. If 485 out of the next 500 orders are processed on the same day, would this prove that they are exceeding their goal, using alpha = .025?
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Ho: p = 0.95
Ha: p > 0.95
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I ran a 1-proportion z test and got the following:
test statistic: z = 2.052..
p-value: 0.0201
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Conclusion: Since the p-value is less than 0.025, reject Ho.
The test shows the goal is being exceeded (but not by much).
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Cheers,
Stan H.
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