Question

A manufacturing company produces water filters for home refrigerators. The process has typically produced about 4% defective liters. A new design experiment has led to change the seal to reduce defects. With the process running using the new seal, a random sample of 300 liters yielded 7 defects. Conduct a hypothesis test at the 10% significance level.

1. Set up the null and alternative hypotheses.
2. Compute the test statistic.
3. State the p-value for the test.
4. State the decision and conclusion of the test in context.

Please show your work, Thanks!

Answer 1

1. Here claim is that p<0.04

So hypothesis is vs

2.

So the test statistics is

3. P value is

4. As P value is less than , we reject the null hypothesis

Hence we have sufficient evidence to support the claim that p<0.04