A Manufacturer Claims That Less Than 1% of All His

question 68

Short Answer

A manufacturer claims that less than 1% of all his products do not meet the minimum government standards. A survey of 500 products revealed ten did not meet the standard. What is the critical value, if the level of significance is 2%? ______

---

Definitions:

Economic Conditions

The state of a country's economy at a given time, influenced by factors such as GDP, unemployment rates, and inflation.

Liquidity

A company’s ability to convert assets into cash.

Straight-Line Depreciation

A method of calculating the depreciation of an asset which spreads the cost evenly over its estimated useful life.

Useful Life

An estimate of the duration over which an asset is expected to be economically viable and operational in a business.