Question

An appliance manufacturer stockpiles washers and dryers in a large warehouse for shipment to retail stores. Sometimes in handling the appliances get damaged. Even though the damage may be minor, the company must sell those machines at drastically reduced prices. The company goal is to keep the proportion of damaged machines below 2%. One day an inspector randomly checks 60 washers and finds that 5 of them have scratches or dents. Is this strong evidence that the warehouse is failing to meet the company’s goal. Test an appropriate hypothesis and state your conclusion.

Answer 1