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Conduct a full hypothesis test and determine if the given claim is supported or

ID: 2907333 • Letter: C

Question

Conduct a full hypothesis test and determine if the given claim is supported or not supported at the 0.05 significance level. T) 7) A manufacturer considers his production process to be out of control when defects exceed 3%. In a random sample of 85 items, the defect rate is 5.8% but the manager claims that this is only a sample fluctuation and production is not really out of control. Test whether the manufacturer's claim that production is out of control is supported or not supported. A) not supported B) supported

Explanation / Answer

H0: P = 0.03

H1: P > 0.03

The test statistic z = (p - P)/sqrt(P(1 - P)/n)

                              = (0.058 - 0.03)/sqrt(0.03 * 0.97/85)

                              = 1.51

P-value = P(Z > 1.51)

              = 1 - P(Z < 1.51)

              = 1 - 0.9345

              = 0.0655

As the P-value is greater than the significance level (0.0655 > 0.05), we should not reject the null hypothesis.

So there is not sufficient evidence to support the manufacture's claim that production is out of control.

Option - A) not supported

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