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A computer peripheral manufacturer stockpiles monitors and printers in a large warehouse for shipment to retail stores. Some peripherals get damaged in handling. The

 

A computer peripheral manufacturer stockpiles monitors and printers in a large warehouse for shipment to retail stores. Some peripherals get damaged in handling. The long-term goal has been to keep the level of damaged machines below 2%. In a recent test, an inspector randomly checked 4 dozens of monitors and discovered that 4 of them had scratches or dents. Test the null hypothesis Ho: p 0.02 in which p represents the probability of a damaged monitor. (a) Do these data supply enough evidence to reject Ho? Use a binomial model to obtain the p- value. (b) What assumption is necessary in order to use the binomial model for the count of the number of damaged washers? (c) Test Ho by using a normal model for the sampling distribution of . Does this test reject Ho? (d) Which test procedure should be used to test Ho? Explain your choice.

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