In: Statistics and Probability
Please show and answer all the parts of this question. This is Testing Hypotheses About Proportions in Statistics
Suppose that in manufacturing a very sensitive electronic component, a company and its customers have tolerated a 2% defective rate. Recently, however, several customers have been complaining that there seem to be more defectives than in the past. Given that the company has made recent modifications to its manufacturing process, it is wondering if in fact the defective rate has increased from 2%. For quality assurance purposes, you decide to randomly select 1,000 of these electronic components before they are shipped to customers. Of the 1,000 components, you find 25 that are defective. Assume that the company produces a very large number of these components on any given day.
the minimum number of defectives in a random sample of 1000 needed to find in order to statistically decide that the defect rate exceeds 0.02 is 28.
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