Question: Shulman Steel Corporation makes bearings that are supplied to other

Shulman Steel Corporation makes bearings that are supplied to other companies. One of the machines makes bearings that are supposed to have a diameter of 4 inches. The bearings that have a diameter of either more or less than 4 inches are considered defective and are discarded. When working properly, the machine does not produce more than 7% of bearings that are defective. The quality control inspector selects a sample of 200 bearings each week and inspects them for the size of their diameters. Using the sample proportion, the quality control inspector tests the null hypothesis p < .07 against the alternative hypothesis p > .07, where p is the proportion of bearings that are defective. He always uses a 2% significance level. If the null hypothesis is rejected, the machine is stopped to make any necessary adjustments. One sample of 200 bearings taken recently contained 22 defective bearings.
a. Using a 2% significance level, will you conclude that the machine should be stopped to make necessary adjustments?
b. Perform the test of part a using a 1% significance level. Is your decision different from the one in part a?
Comment on the results of parts a and b.

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  • CreatedAugust 25, 2015
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