A PC manufacturer claims that no more than 2% of their machines are defective. I

Question

A PC manufacturer claims that no more than 2% of their machines are defective. In a random sample of 100 machines, it is found that 5% are defective. The manufacturer claims this is a fluke of the sample.

MegaStat Output
Hypothesis test for proportion vs. hypothesized value

Observed Hypothesized
0.05 0.02 p (as decimal)
5/100 2/100 p (as fraction)
5 2 X
100 100 n


0.014 std. error
2.14 z
.0161 p-value (one-tailed, upper

Question: At a .01 level of significance, test the manufacture’s claim, and explain your answer.

Explanation / Answer

The test hypothesis is Ho: p = 0.02 Ha: p > 0.02 test statistic = 2.14 p-value = .0161 We cannot reject the null hypothesis because the p-value is greater than the significance level. We don't have sufficient evidence to conclude that more than 2% of their machines are defective.

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