For Each Shipment of Parts a Manufacturer Wants to Accept

question 68

Essay

For each shipment of parts a manufacturer wants to accept only those shipments with at most 10% defective parts. A large shipment has just arrived. A quality control manager randomly selects 50 of the parts from the shipment and finds that 6 parts are defective. Is this sufficient evidence to reject the entire shipment? Use a .05 level of significance to conduct the appropriate hypothesis test.

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Definitions:

Lost Check

A check that has been misplaced, destroyed, or otherwise lost, potentially leading to the issuance of a stop payment order and requiring a replacement.

Drawer

In banking and finance, the person who writes or issues a check or draft instructing the bank to pay a specified amount of money to a designated party.

Drawee

The party in a financial transaction who is directed to pay a certain sum of money as per the payer's instructions.

Stop Payment Order

A request made to a financial institution to cancel the payment or processing of a check or payment transaction before it has been completed.