A candy company that makes colored candies claims that 10% of the candies it pro

Question

A candy company that makes colored candies claims that 10% of the candies it produces are green and that bags are packed randomly. In a really large bag of candies, we found 12% of 500 candies were green. Is this evidence that the manufacturing process is out of control and has made too many greens? Explain. Select the correct choice below and fill in the answer box to complete your choice. A. Yes, because this observation is standard deviation(s) above the mean. B. Yes, because this observation is standard deviation(s) below the mean. C. No, because this observation is standard deviation(s) below the mean. D. No, because this observation is standard deviation(s) above the mean.

Explanation / Answer

Here Sample Proportion = 0.12

Standard deviation = Sqrt(0.10*0.90/500) = 0.013416

So, No of standard deviations above the mean = (0.12-0.10)/0.013416 =1.49

So, Correct option is A and empty box answer is 1.49

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