A manufacturing firm uses two different processes to evaluate the quality of inc
ID: 3227696 • Letter: A
Question
A manufacturing firm uses two different processes to evaluate the quality of incoming components of a particular class. In a recent test of the processes' effectiveness, a random sample was taken consisting of 5,000 components, 2,500 that had been evaluated by process A and 2,500 that had been evaluated by process B. Of the 2,500 that had been evaluated by process A, 87 had been misclassified. Process B generated 65 misclassifications in its sample. Assume that this evaluation was undertaken to determine if there is sufficient evidence to conclude that process B leads to a lower miscalculation rate. Assume also that is set at 0.02.
What is the appropriate critical value for the test statistic in this instance?
Choice 1: Z > 1.75
Choice 2: Z > 2.05
Choice 3: Z > 1.645
Choice 4: Z < - 1.645
Choice 5: Z > 1.88
Choice 1: Z > 1.75
Choice 2: Z > 2.05
Choice 3: Z > 1.645
Choice 4: Z < - 1.645
Choice 5: Z > 1.88
Explanation / Answer
Ans
choice 2 Z > 2.05 because we have alpha = 0.02
1- alpha = 1- 0.02 = 0.98
In Z value table critical value of 0.02 is 2.05
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