Misleading with Statistics Chemco, a supplier of chemical-waste containers, finds that 3% of a sample of 500
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Misleading with Statistics Chemco, a supplier of chemical-waste containers, finds that 3% of a sample of 500 units are defective. Being fundamentally dishonest, the Chemco production manager wants to make a claim that the rate of defective units is no more than some specified percentage, and he doesn’t want that claim rejected at the 0.05 significance level if the sample data are used. What is the lowest defective rate he can claim under these conditions?
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