Assuming that 4 bolts out of every 100 produced are defective in some way. If a sample of 50 bolts is drawn at random, then the manufacturer might be satisfied that his defect rate is still 4% provided that there are no more than 2 defective bolts in the sample. The manufacturer’s quality manager has formulated the hypotheses: H0 : p=0.04 The manufacturer has also made a decision that should the defect rate rise to 6% or more, he will take some action to protect the companies good name.
Using the binomial distribution determine the probabilities of getting 0,1,2 or 3 defective bolts in the sample and interpret your statistical hypothesis test results (refer to the error types) in the provision of justified advice for the manufacturer
We have:
n = 50
p=0.04
r = 0, 1, 2 or 3
For r = 0,
P(r = 0) = 50C0(0.04)0(1 - 0.04)50 - 0 = 0.1299
For r = 1,
P(r = 1) = 50C1(0.04)1(1 - 0.04)50 - 1 = 0.2706
For r = 2,
P(r = 2) = 50C2(0.04)2(1 - 0.04)50 - 2 = 0.2762
For r = 3,
P(r = 3) = 50C3(0.04)3(1 - 0.04)50 - 3 = 0.1842
Since all the probabilities of defect rates are greater than 6%, the manufacturer will take some action to protect the companies good name.
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