10% of Amazon packages are damaged. In an effort to lower this percentage, the new packaging material is introduced. To test whether the new packaging material is successful, a random sample of 300 packages is inspected and 24 are damaged. Testing at the significance level of a= 0.5.
Find:
a. H0, Ha
b. p̂
c. Z- Value
d. P- Value
e. Conclusion (reject H0 or do not reject H0 )
Solution :
This is the two tailed test .
The null and alternative hypothesis is
H0 : p = 0.10
Ha : p 0.10
= x / n = 24 / 300 = 0.08
P0 = 0.10
1 - P0 = 0.90
Test statistic = z
= - P0 / [P0 * (1 - P0 ) / n]
= 0.08 - 0.10 / [(0.10 * 0.90) / 300]
= -1.155
P(z < -1.155) = 0.124
P-value = 0.124
= 0.05
P-value >
Fail to reject the (H0).
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