For each of the following situations, determine whether a one-tail test or a two-tail test would be
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a. A machine that has not been serviced for several months is producing output in which 5% of the items are defective. The machine has just been serviced and quality should now be improved.
b. In a speech during her campaign for reelection, a Republican candidate claims that 55% of registered Democrats in her county intend to vote for her.
c. Of those who have bought a new car in the past, a dealer has found that 70% experience three or more mechanical problems in the first four months of ownership. Unhappy with this percentage, the dealer has heavily revised the procedure by which predelivery mechanical checks are carried out.
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
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