In a random sample of 250 items, 42 are defective. If the null hypothesis is that 16 % of the items in the population are defective, what is the value of ZSTAT?
Solution :
Given that,
= 0.16
1 - = 0.84
n = 250
x = 42
Point estimate = sample proportion = = x / n = 0.168
Test statistics
z = ( - ) / *(1-) / n
= ( 0.168 - 0.16) / (0.16*0.84) /250
= 0.345
The value of zstat is 0.345
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