For Each Shipment of Parts a Manufacturer Wants to Accept

question 68

Essay

For each shipment of parts a manufacturer wants to accept only those shipments with at most 10% defective parts. A large shipment has just arrived. A quality control manager randomly selects 50 of the parts from the shipment and finds that 6 parts are defective. Is this sufficient evidence to reject the entire shipment? Use a .05 level of significance to conduct the appropriate hypothesis test.

---

Definitions:

Surplus

An amount of something left over when requirements have been met; an excess of production or supply over demand.

Being In The Black

A financial term indicating a company or individual is making a profit or has a positive balance.

Deficit

A shortfall or deficiency, such as in a budget or in the amount of a required substance.

Being In The Red

A financial term indicating that a business or individual is operating at a loss or spending more money than is being earned.