A Contract with a Parts Supplier Calls for No More

question 14

Essay

A contract with a parts supplier calls for no more than .04 defects in the large shipment of parts. To test whether the shipment meets the contract, the receiving company has selected a random sample of n = 100 parts and found 6 defects. If the hypothesis test is to be conducted using a significance level equal to 0.05, what is the test statistic and what conclusion should the company reach based on the sample data?

---

Definitions:

Self-serving Bias

The common human tendency to attribute positive events to one's own character but attribute negative events to external factors.

Sociology Class

A course of study that investigates the development, structure, and functioning of human society, along with the systematic study of social behavior and social institutions.

Intrapersonal Level

Pertains to processes, thoughts, and emotions that occur within an individual's mind.

Social Cognition

The study of how people process social information, including understanding and reasoning about others' behaviors and intentions.