When testing gas pumps for accuracy, fuel-quality enforcement specialists tested

Question

When testing gas pumps for accuracy, fuel-quality enforcement specialists tested pumps and found that 1325 of them were not pumping accurately (within 3.3 oz when 5 gal is pumped), and 5665 pumps were accurate. Use a 0.01 significance level to test the claim of an industry representative that less than 20% of the pumps are inaccurate. Use the P-value method.

a) State you hypotheses clearly. b) Identify the test statistic. c) Identify the P-value. d) State your conclusion and interpret in the context of the claim

Explanation / Answer

P = 1325 / 5665 = 0.2339

Ho : p = 0.20   H1 P < 0.20

Z = 0.2339 - 0.20 / SRQT ( [0.20*0.80] / 5665 )

Z = 6.37

p value : 0.0000

since p value is very lower we reject Ho

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