SOLUTION: a manufacturer company is investigating the probability of replacing a machine because the proportion of defects is 0.20. the company use a demonstrator model of their new mach
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Question 750128: a manufacturer company is investigating the probability of replacing a machine because the proportion of defects is 0.20. the company use a demonstrator model of their new machine on trial basis. A random sample of 70 items from the machine contain 4 defects. does the new machine produce fewer defects than the older machine at 95% confidence interval? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! a manufacturer company is investigating the probability of replacing a machine because the proportion of defects is 0.20. the company use a demonstrator model of their new machine on trial basis. A random sample of 70 items from the machine contain 4 defects. does the new machine produce fewer defects than the older machine at 95% confidence interval?
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Ho: p = 0.2
Ha: p < 0.2
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p-hat = 4/70
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z(4/70) = (4/70 - 0.2)/sqrt[0.2*0.8/70] = -2.9881
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z-value = P(z < -2.9881) = 0.0014
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Since the p-value is less than 5%, reject Ho at the 5% significance level.
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Cheers,
Stan H.
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