In: Statistics and Probability
A random sample of 300 electronic components manufactured by a new machine is tested and 9 are found to be defective. The parts using the old machine have a true defective proportion of four percent. Does this sample provide evidence that the true defective proportion for the new machine is less than the old machine’s at the 5% significance level? Justify using a hypothesis test! Be sure to state you Ho and Ha, your test statistic and p-value, your decision and your conclusion.
Let p denotes the true defective proportion.
There is sufficient evidence to support the claim that the true defective proportion for the new machine is less than the old machine’s true defective proportion i.e. 4%.