A toaster manufacturer receives large shipments of thermal s

A toaster manufacturer receives large shipments of thermal switches from a supplier. A sample from each shipment is selected and tested. The manufacturer is willing to send the shipment back if the proportion of defective switches is more than 5%. Otherwise, the shipment will be kept. State the appropriate null and alternative hypotheses to be tested by the manufacturer.

Solution

Here, the alternative hypothesis is p > 0.05, in which case, the shipment will be sent back.

hence,

Ho: p <= 0.05
Ha: p > 0.05 [ANSWER]