A Computer Manufacturer Believes That the Proportion of Hardware Malfunctions

question 125

Essay

A computer manufacturer believes that the proportion of hardware malfunctions is different in humid climates than in dry climates. To test this claim, the manufacturer takes a random sample of 400 machines sold in Florida (humid) and 400 machines sold in Arizona (dry). The manufacturer finds that 44 of the machines in Florida and 24 of the machines in Arizona had hardware malfunctions.
A) Specify the competing hypotheses to test the manufacturer's claim.
B) Calculate the value of the relevant test statistic.
C) Compute the p-value. Does the evidence support the computer manufacturer's claim at the 10% significance level?

• A) Specify the competing hypotheses to test the manufacturer's claim.
• B) Calculate the value of the relevant test statistic.
• C) Compute the p-value. Does the evidence support the computer manufacturer's claim at the 10% significance level?

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Definitions:

Lower Costs

The process or strategy of reducing expenses incurred in operations, production, or providing services to increase profitability.

Competitive Advantage

A unique attribute or position that allows a company to outperform its competitors.

Customer's Tastes

Customer's tastes refer to the preferences, inclinations, and discretionary choices of consumers that influence their purchasing behavior and affect how businesses market and sell products or services.

Competitive Advantage

Competitive advantage is a condition or circumstance that puts a company in a favorable or superior business position compared to its competitors, often through unique resources, capabilities, or strategies.