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 1324 of them were not pumping accurately (within 3.3 oz when 5 gal is pumped), and 5658 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 and use the normal distribution as an approximation to the binomial distribution. O E. Ho:p#0.2 H:p 0.2 H1:p 0.2 The test statistic is z 6 (Round to four decimal places as needed.) The P-value is ds (Round to four decimal places as needed.) Because the P-value is greater than the significance level, the pumps are inaccurate. reject | the null hypothesis. There is insufficient evidence support the claim that less than 20% of

Explanation / Answer

P = 1324 / 5658 = 0.2340

Ho : p = 0.20   H1 P < 0.20

Z = 0.2340 - 0.20 / SRQT ( [0.20*0.80] / 5658)

Z = 6.37

p value : 0.0000

since p value is very lower we reject Ho, insufficient

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