SOLUTION: An auditor claims that 10% of the invoices for a certain company are incorrect. To test this claim , a random sample of 200 invoices are checked and 24 are found to be incorrect. T
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Question 1194789: An auditor claims that 10% of the invoices for a certain company are incorrect. To test this claim , a random sample of 200 invoices are checked and 24 are found to be incorrect. Test this at the 1% , significant level to see if the auditor's claim is supported by the sample evidence. Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! Ho: p=0.10
Ha: p NE 0.10
alpha is 0.01 p{reject Ho|Ho true}
test is 1 sample proportion reject z for |z|>2.576; 24/200 is 0.12, p hat
z=(0.12-0.10)/sqrt (0.1*0.9)/200
=0.02/0.0212
=0.94
fail to reject Ho; insufficient evidence to say that the claim is incorrect.
