Question 133389This question is from textbook
: 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?
This question is from textbook
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! 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 (Claim)
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Critical value for one-tail test with alpha = 0.025: z=1.9599
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Test Statistic:
z(485/500) = (0.97-0.95)/sqrt[0.95*0.05/500] = 2.0519
p-value = P(0.2051 < z < 10) = 0.02
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Conclusion:
Since p-value is less than alph, reject Ho.
The test shows they are exceeding their goal.
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Cheers,
Stan H.
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