A manufacturer finds that in a random sample of 100 of its C

A manufacturer finds that in a random sample of 100 of its CD players, 96% have no defects. The manufacturer wishes to make a claim about the percentage of nondefective CD players and is prepared to exaggerate. What is the highest rate of nondefective CD players that the manufacturer could claim under the following condition? His claim would not be rejected at the 0.05 significance level if this sample data were used. Assume that a left-tailed hypothesis test would be performed.

Solution

using left tailed hypothesis test for 0.05 significance level

z=-1.751

H0: p=

Ha: p<

inorder to support our hypothesis we need to find

z\' <-1.751 as an upper limit

So here upto 0.982 z\'<1.751

so highest rate is 98.2%