In: Statistics and Probability
a fraction defactive of no more than 0.04 i random sample size of 195 yields 40 defects. What is the value of the test statistic?
Solution :
Given that,
= 0.04
1 - 
 = 0.96
n = 195
x = 40
Level of significance = 
 = 0.0
Point estimate = sample proportion = 
 = x / n = 0.205
Test statistic
z = (
- 
 ) / 
*(1-
)
/ n
= ( 0.205 - 0.04) / 
 (0.04*0.96) / 195
= 11.758