Question

The process of manufacturing 2" LCD color TV screens is a difficult one, and one manufacturer (Sonasonic) has a historical scrap rate for this process of 30%...... i.e. 30% of all screens produced do not pass inspection and must be scrapped. A young Sonasonic engineer has proposed a new method for manufacturing the product which, she believes, will lower the scrap rate. In a trial production run using the new method, 100 screens are produced and 26 must be scrapped.
If we wish to test to see to see whether this sample result provides evidence that the population scrap rate p using the new method is less than 30%, then the appropriate hypothesis test setup is:

		H0: p = 0.30 vs. H1: p <> 0.30 ('<>' means 'not equal')
		H0: p <= 0.30 vs. H1: p > 0.30
		H0: p < 0.30 vs. H1: p >= 0.30
		H0: p >= 0.30 vs. H1: p < 0.30
		H0: p > 0.30 vs. H1: p <= 0.30

Answer 1

Ans : H0: p >= 0.30 vs. H1: p < 0.30