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A sample of 800 items produced on a new machine showed that 48 of them are defective. The factory will get rid the machine if
A sample of 800 items produced on a new machine showed that 48 of them are defective. The factory will get rid the machine if the data indicates that the proportion of defective items is significantly more than 5%. At a significance level of 5%, is there enough evidence to get rid of the machine? The following steps should be indicated in your answer: i. Null and Alternative Hypothesis (both in symbols and in statement form) ii. Level of Significance; sample size; test statistics iii. Decision Rule iv. Computation: Paster the solution you made v. Decision and Conclusion
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