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Given: n = 40, p = .20 defects/unit Could this sample have possibly come from a...

Given: n = 40, p = .20 defects/unit
Could this sample have possibly come from a process whose process average is .14 defects/unit? Test at a level of significance of .01.
a) z = +1.75, Do not reject Ho b) z = -.075, Reject Ho c) z = +1.01, Do not reject Ho d) z = +2.47, Reject Ho

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Answer #1

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n = 40, p^ = .20 defect/unit

p = .14 defect/unit

The significance level is .01

Z critical value for alpha = .01 (2-sided) is +/- 2.58

Z test statistic i s: (p^ - p)/sqrt(p*p'/n) = (.20-.14)/sqrt(.14*.86/40) = 1.094 or 1.01

Since 1.094 is not beyond the +/- 2.58 range, we will fail to reject Ho ,and conclude that the sample possibly came from a process whose process average is .14 defects/unit.

So, the correct answer is C) Z = +1.01 , do not reject Ho

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