KINDLY COMPLETE ALL PARTS OF ALL PROBLEMS. PARTIAL CREDIT WILL BE GIVEN ON THE P

Question

KINDLY COMPLETE ALL PARTS OF ALL PROBLEMS. PARTIAL CREDIT WILL BE GIVEN ON THE PARTS OF THE PROBLEMS THAT ARE COMPLETED. ENSURE THAT YOU ANSWER EACH QUESTI ON THE SPACE PROVIDED AND SHOW ALL YOUR WORK INCLUDING THE REQUIRED DISTRIBUTION PLOTS AND DRAWING OTHER GRAPHS. 1. A metal manufacturer uses a punching machine that makes metal parts and is interested in estimating the fraction of defective parts produced by this machine. A random sample of 800 parts was obtained and 10 parts were found to be defective A) Perform a Hypothesis Test to find out if the fraction of defective parts exceeds 0.01. Show all your 5 steps of the test, include the required plot and use ONLY the P-Value as a rejection rule for this test. (15 Points) B) Repeat only the three required steps to test the same Hypothesis as in part A but use Confidence Interval as a reiection rule, (9 Points)

Explanation / Answer

SolutioNA:

Step1:state null and alternative hypothesis

Null Hypothesi:H0:p=0.01

Alternative Hypothesis:H1:p>0.01

State level of significance

alpha=0.01

Step2:

Test statistic:

Z=p^-p/sqrt(p(1-p)/n

p^=sample prop=x/n=10/800=0.0125

Z=0.0125-0.01/sqrt(0.01*(1-0.01)/800

Z=0.711

Step3:

state p value

p=0.2385

Step4:

decsion rule

if p<.05 Reject Ho

if p>0.05 do not reject Ho

Here p>0.05 Do not reject HO

Step5:

conclusion:

There is no suffiicient evidence at 5% level of signfcance to conclude that the fraction of defective parts exceeds 0.01

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