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An appliance manufacturer stockpiles washers in a large warehouse for shipment t

ID: 3158385 • Letter: A

Question

An appliance manufacturer stockpiles washers in a large warehouse for shipment to retail stores.? Sometimes, during handling the appliances get damaged. Even though the damage may be? minor, the company must sell those machines at drastically reduced? prices, so a company has developed what it hopes will reduce the damage rate. The goal is to have the damage rate lower than? 5%. One day an inspector randomly checks 150 washers handled by the new method and finds that 3 of them have scratches or dents. Is this strong evidence that the new method meets the? company’s goal? Test the? company’s goal using? ? = 0.05

a) Select the correct answer OA Ho: P 0.05 B. H : P= 0.05 O D. H : =0.05 b) Select the correct answer A HA:u 0.05 OB. HA: p0.05 O C. HAN:0.05 o D. HA: p = 0.05 c) The sample proportion = d) Choose the correct answer O A. The P-value > B. The P-value

Explanation / Answer

a)

Formulating the null and alternatuve hypotheses,          
          
Ho:   p   =   0.05 [ANSWER, B]

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b)

Ha:   p   <   0.05 [ANSWER, B]

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c)

As we see, the hypothesized po =   0.05      

Getting the point estimate of p, p^,          
          
p^ = x / n = 3/150 =   0.02   [ANSWER]

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d)  
          
Getting the standard error of p^, sp,          
          
sp = sqrt[po (1 - po)/n] =    0.01779513      
          
Getting the z statistic,          
          
z = (p^ - po)/sp =    -1.685854461      
          
As this is a    1   tailed test, then, getting the p value,  
          
p =    0.045911918      

Hence, P < 0.05.

So,

OPTION : The Pvalue < alpha. [ANSWER]

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e)

Hence, P < 0.05, so we   REJECT THE NULL HYPOTHESIS.   [ANSWER, A]

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f)

TRUE. [ANSWER]

  

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