Question

A sample of 1600 computer chips revealed that 78% of the chips do not fail in the first 1000 hours of their use. The company's promotional literature states that 77% of the chips do not fail in the first 1000hours of their use. The quality control manager wants to test the claim that the actual percentage that do not fail is more than the stated percentage. Is there enough evidence at the 0.02 level to support the manager's claim?

State the null and alternative hypotheses.

Find the value of the test statistic. Round your answer to two decimal places.

Answer #1

Null Hypothesis H0: p= 0.77

Alternative Hypothesis H1: p > 0.77 (Claim ) (Right tailed test)

Under H0, the test statistic is

Significance Level

The critical value of Z at 2% significance level is 2.05

The P-Value is 0.171056

Since p value is greater than significance level, Fail to Reject H0

Hence , at 2% significance level, we do not have enough evidence to supoort the claim that the actual percentage that do not fail is more than the stated percentage

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