Question 604825: 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! 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.
Ho: p <= 0.05 (claim)
Ha: p > 0.05
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test proportion: 26/400 = 0.065
test statistic: z(0.065) = (0.065-0.05)/sqrt(0.05*0.95/400) = 1.3765
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p-value = P(z > 1.3765) = 0.0843
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Conclusion: Since the p-value is greater than 5%, fail to reject Ho.
The test results support the claim.
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Cheers,
Stan H.
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