The reputations (and hence sales) of many businesses can be severely damaged by shipments of manufactured items

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The reputations (and hence sales) of many businesses can be severely damaged by shipments of manufactured items that contain a large percentage of defectives.

For example, a manufacturer of alkaline batteries may want to be reasonably certain that fewer than 5% of its batteries are defective. Suppose 300 batteries are randomly selected from a very large shipment; each is tested, and 10 defective batteries are found.

Does this provide sufficient evidence for the manufacturer to conclude that the fraction defective in the entire shipment is less than .05? Use α = .01.

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Statistics For Business And Economics

ISBN: 9781292227085

13th Global Edition

Authors: Terry Sincich James Mcclave, P. George Benson

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