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A sample of 1400 computer chips revealed that 47% of the chips do not fail in...

A sample of 1400 computer chips revealed that 47% of the chips do not fail in the first 1000 hours of their use. The company's promotional literature states that 50 % of the chips do not fail in the first 1000 hours of their use. The quality control manager wants to test the claim that the actual percentage that do not fail is different from the stated percentage. Determine the decision rule for rejecting the null hypothesis, H0 , at the 0.02 level.

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Answer #1

Here claim is that p is different from 0.5

So hypothesis is vs

Now test statistic is

Where

Hence test statistics is

So P value is

As P value is greater than alpha, we fail to reject the null hypothesis

Hence we do not have sufficient evidence to support the claim that mean is different from 0.5

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