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