Problem 1 The reputations and hence sales of many businesses

Problem 1) The reputations (and hence sales) of many businesses can be severely damaged by shipments of manufactured items that contain a large percentage of defectives. For example, a manufacturer of alkaline batteries may want to be reasonably certain that fewer than 4% of its batteries are defective. Suppose a SRS of 300 batteries are selected from a very large shipment; each is tested and 10 defective batteries are found.

Conduct a significance test to decide if there is sufficient evidence for the manufacturer to conclude that the fraction defective in the entire shipment is less than 4 percent.

Choose one of the statements for your conclusion, depending on your P-value:

The fraction defective in the entire shipment is less than 4 percent (P-value =)

The data are insufficient for the manufacturer to conclude that the fraction defective in the entire shipment is less than 4 percent

Solution