Question

1. Dunder Mifflin recently expanded its supply to include not just paper, but also copiers. David Wallace, the chief financial officer, claims that the expansion

is a smashing success, with the copier production process producing defective parts only 0.7% of the time. Michael Scott is not superstitious. . . but he is

a little stitious. He believes that David Wallace’s claim is incorrect. He randomly selects 750 copier parts and finds 12 that are defective. Do these data provide

evidence at the 10% level that the proportion of defective copier parts is not 0.7%?

(a) Define the appropriate parameter and hypotheses.

(b) Check that the appropriate assumptions hold.

(c) Calculate the appropriate test statistic. Show your work.

(d) Find the rejection region.

(e) Use your results from the test to provide support for your decision about the null hypothesis.

(f) Summarize the results of your hypothesis test in context.

2. As regional co-manager of Dunder Mifflin, Jim suggests using the p-value approach to double check behind

Michael. Find the appropriate p-value (use appropriate probability notation) and provide support for a decision about H0. Does your conclusion change at all?

Answer 1