Use the One-Proportion Z-Test to Perform the Required Hypothesis Test

question 47

Essay

Use the one-proportion z-test to perform the required hypothesis test. Use the critical-value approach.
-A manufacturer considers his production process to be out of control when defects exceed 3%. In a random sample of 85 items, the defect rate is 5.9% but the manager claims that this is only a sample fluctuation and that production is not really out of control. At the 0.01 level of significance, do the data provide sufficient evidence that the percentage of defects exceeds 3%?

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Definitions:

Capital Account

A financial statement that shows the changes in ownership interest in a company over a period.

Salary Allowance

A fixed amount of money paid to employees, often as part of compensation for job-related expenses or allowances.

Interest Allowance

A provision or adjustment made for the calculation of interest receivable or payable over a specified period.

Fixed Ratio

A prescribed relationship between two quantities, expressed as a constant value.