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.

H0: xbar=0.05 vs. Ha: xbar not equal 0.05

H0: p=0.05 vs. Ha: p>0.05

H0: p=0.05 vs. Ha: p not equal 0.05

H0: xbar=0.05 vs. Ha: xbar<0.05

Solution

The manufacturer is willing to send the shipment back if the proportion of defective switches is more than 5%.

Hence, this is the alternative hypothesis.

Thus, as this is a proportion, we use p, then

OPTION B: H0: p=0.05 vs. Ha: p>0.05 [ANSWER, B]