Question 587941: A supplier of components to an electronic industry makes a sophisticated product which sometimes fails immediately it is used. He controls his manufacturing process so that the proportion of faulty products is supposed to be only 5%. Out of 400 supplies in a batch, 26 prove to be faulty. Verify the manufacturer’s claim. Use 0.05 level of significance.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! the proportion of faulty products is supposed to be only 5%. Out of 400 supplies in a batch, 26 prove to be faulty. Verify the manufacturer’s claim. Use 0.05 level of significance.
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Ho: p = 0.05
Ha: p # 0.05
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p-hat = 26/400 = 0.0650
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z(0.0650) = (0.0650-0.05)/sqrt(0.05*0.95/400) = 1.3765
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p-value = 2*P(z>1.3765) = 0.1687
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Since the p-value is greater than 5%, fail to reject Ho
at the 5% level of significance.
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Cheers,
Stan H.
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