A salesman for a new manufacturer of cellular phones claims not only that they cost the retailer less but also that the percentage of defective cellular phones found among his products, ( p1 ), will be no higher than the percentage of defectives found in a competitor's line, ( p2 ). To test this statement, the retailer took a random sample of 130 of the salesman's cellular phones and 105 of the competitor's cellular phones. The retailer found that 12 of the salesman's cellular phones and 7 of the competitor's cellular phones were defective. Does the retailer have enough evidence to reject the salesman's claim? Use a significance level of α=0.05 for the test.
Step 1 of 6: State the null and alternative hypotheses for the test.
Step 2 of 6: Find the values of the two sample proportions, pˆ1 and pˆ2. Round your answers to three decimal places.
Step 3 of 6: Compute the weighted estimate of p, p‾. Round your answer to three decimal places
Step 4 of 6: Compute the value of the test statistic. Round your answer to two decimal places.
Step 5 of 6: Determine the decision rule for rejecting the null hypothesis H0. Round the numerical portion of your answer to three decimal places.
Step 6 of 6: Make the decision for the hypothesis test. ( Reject or fail to reject null hypothesis)
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