Use the Following Information to Answer the Question $p = 0.07$

question 44

Multiple Choice

Use the following information to answer the question. A janitor at a large office building believes that his supply of light
bulbs has too many defective bulbs. The janitor's null hypothesis is that the supply of light bulbs has a defect rate of p $p = 0.07$ (the light bulb manufacturer's stated defect rate) . Suppose he does a hypothesis test with a significance level of 0.05.
Symbolically, the null and alternative hypothesis are as follows: $$\mathrm { H } _ { 0 } : \mathrm { p } = 0.07 \text { and } \mathrm { H } _ { \mathrm { a } } : \mathrm { p } > 0.07$$
-Suppose that the janitor tests 300 randomly selected light bulbs and finds that 27 bulbs are defective. What value of the test statistic should he report? Round to the nearest hundredth.

• A) \(z = - 1.96\)
• B) \(z = 1.96\)
• C) \(z = 1.36\)
• D) \(z = - 1.36\)

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Definitions:

Management

The process of planning, organizing, leading, and controlling an organization's resources to achieve specific goals.

FIFO

"First In, First Out," an inventory valuation method where the oldest inventory items are recorded as sold first.

Perpetual Inventory System

A method of accounting for inventory that records sales and purchases of inventory instantly through the use of computerized point-of-sale systems and enterprise asset management software.