In: Statistics and Probability
A sport utility vehicle design is suspected to have propensity for rollover. In a test, out of 600 vehicles, 17 are observed to rollover. At a significance level of 0.05, test the hypothesis that proportion of vehicles with rollover problem is more than 2%.
a. Write the appropriate hypothesis.
b. Test the hypothesis using P-value approach,
c. Test the hypothesis using z-test, and
d. Test the hypothesis using Confidence Interval method.
e. Clearly write your conclusion.
f. If the true fraction of defects is found to be 2.5%, find the type II error.
g. What is the minimum sample size needed to detect type II error within 5% accuracy if the true fraction of defects is 2.5%?