A Company Manufacturing Computer Chips Finds That 8% of All

question 5

Multiple Choice

A company manufacturing computer chips finds that 8% of all chips manufactured are defective. Management is concerned that high employee turnover is partially responsible
For the high defect rate. In an effort to decrease the percentage of defective chips,
Management decides to provide additional training to those employees hired within the
Last year. After training was implemented, a sample of 450 chips revealed only 27
Defects. Was is the P-value for this proportion test?

• A) 0.0297
• B) 0.0594
• C) 0.1638
• D) 0.1188
• E) 0.5940

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Definitions:

Interest

The cost incurred for the benefit of borrowing funds, usually presented as a yearly percentage rate.

Risk Averse

The tendency of individuals to prefer certainty over uncertainty, avoiding risks where possible, especially in financial decisions.

Dividend

A portion of a company's earnings distributed to its shareholders.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender or the rate earned on a deposit or investment.