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?

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Definitions:

Labeling

The presentation of important information on a package.

Sales Orientation

Sales orientation is a business approach that prioritizes selling products and services through aggressive promotion and sales techniques.

Marketing Concept

The idea that an organization should try to satisfy customers’ needs through coordinated activities that also allow it to achieve its own goals.