Question

The manufacturer of a new racecar engine claims that the proportion of engine failures due to overheating for this new engine, (p1), will be no higher than the proportion of engine failures due to overheating of the old engines, (p2). To test this statement, NASCAR took a random sample of 120 of the new racecar engines and 115 of the old engines. They found that 77 of the new racecar engines and 44 of the old engines failed due to overheating during the test. Does NASCAR have enough evidence to reject the manufacturer's claim about the new racecar engine? Use a significance level of α=0.1 for the test.

Step 4 of 6 :  

Compute the value of the test statistic. Round your answer to two decimal places.

Other correct answers: v v v v v v v v v v v v v v v

Part 1: H0: p1−p2 ≤ 0
Ha: p1−p2 > 0

Part 2: pˆ1=0.058, pˆ2=0.035

Part 3: p-bar‾= 0.047

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Answer 1

NASCAR have enough evidence to reject the manufacturer's claim at 0.1 level of significance.

Value of test statistic is 3.97

Complete solution is given in attached images:

Thank You...!