One Division of a Large Defense Contractor Manufactures Telecommunication Equipment

question 21

Multiple Choice

One division of a large defense contractor manufactures telecommunication equipment for the military. This division reports that 12% of non-electrical components
Are reworked. Management wants to determine if this percentage is the same as the
Percentage rework for the company's electrical components. The Quality Control
Department plans to check a random sample of the over 10,000 electrical components
Manufactured across all divisions. The 95% confidence interval based on this data is
) 0758 to .1339. Should management conclude that the percentage of rework for
Electrical components is lower than the rate of 12% for non-electrical components?

• A) Yes, because the lower limit of the confidence interval is 7.6%.
• B) Yes, because 12% is contained with the 95% confidence interval.
• C) No, because 12% is contained with the 95% confidence interval.
• D) No, because the upper limit of the confidence interval is 13.4%.
• E) None of the above.

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Definitions:

Critical Values

Specific points on the scale of a statistical distribution that are associated with a specified significance level, used for hypothesis testing.

Rejection Regions

Specific areas in the distribution of a test statistic that, if the observed test statistic falls within, will lead to the rejection of the null hypothesis.

Standardized Test Statistic

A calculated statistic that measures the number of standard deviations a sample statistic lies from the null hypothesis, used in hypothesis testing.

Hypotheses

Statements set up for a statistical test that express the relationship between variables. There is usually a null hypothesis (no effect) and an alternative hypothesis (effect present).