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In: Statistics and Probability

A sport utility vehicle design is suspected to have propensity for rollover. In a test, out...

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%?

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