Question: You work in a Quality control for a small manufacturing business that supplies an important part to many different auto mobile companies that they use

You work in a Quality control for a small manufacturing business that supplies an important part to many different auto mobile companies that they use to make the engines that go into their cars. A new company is considering placing a sizable order with your company. This new company understands that no manufacturing process is perfect: defective parts will always be produced. But they have asked your company to provide evidance that no more that

2 %

of the parts supplied by your company will be defective. A simple random sample of

1053

of these parts was taken and

34

parts were found to be defective run the appropriate hypothiesis test with the data and a

1 %

level of significance to determine if your company is meeting the specs requested by this potential new customer.

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