The Goldstar company produces DVR players. With the present manufacturing proces

Question

The Goldstar company produces DVR players. With the present manufacturing process 8.2% of the players need some modification, however slight, before being shipped to retailers. The company is considering adopting a new process that they hope will reduce this modification rate. The new process is tried on a trial basis and the proportion of players that need modification when produced by the new process is recorded. Here are four possible outcomes of the trial. In which outcome is there practical significance but not statistical significance?

Possible outcome

Proportion needing modification

p-value

1

0.034

0.034

2

0.034

0.340

3

0.080

0.080

4

0.080

0.034

Possible outcome

Proportion needing modification

p-value

1

0.034

0.034

2

0.034

0.340

3

0.080

0.080

4

0.080

0.034

Explanation / Answer

In which outcome is there practical significance but not statistical significance?

That means the proportion needing modification is quite far from the former 8.2%, (0.034) but the P value is not small enough (0.340).

Hence, it has to be

OPTION 2: p^ = 0.034, Pvalue = 0.340 [ANSWER]

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