sample of 1800 computer chips revealed that 25% of the chips do not fail in the first 1000 hours of their use. The company's promotional literature claimed that 28% do not fail in the first 1000 hours of their use. Is there sufficient evidence at the 0.02 level to dispute the company's claim

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Answer:

The p-value of the test is 0.0023 < 0.02, which means that there is sufficient evidence at the 0.02 level to dispute the company's claim.

Step-by-step explanation:

The company's promotional literature claimed that 28% do not fail in the first 1000 hours of their use.

At the null hypothesis, we test that at least 28% do not fail, that is:

[tex]H_0: p \geq 0.28[/tex]

At the alternative hypothesis, we test if the proportion is of less than 28%, that is:

[tex]H_1: p < 0.28[/tex]

The test statistic is:

[tex]z = \frac{X - \mu}{\frac{\sigma}{\sqrt{n}}}[/tex]

In which X is the sample mean, [tex]\mu[/tex] is the value tested at the null hypothesis, [tex]\sigma[/tex] is the standard deviation and n is the size of the sample.

0.28 is tested at the null hypothesis:

This means that [tex]\mu = 0.28, \sigma = \sqrt{0.28*0.72}[/tex]

Sample of 1800 computer chips revealed that 25% of the chips do not fail in the first 1000 hours of their use.

This means that [tex]n = 1800, X = 0.25[/tex]

Value of the test statistic:

[tex]z = \frac{X - \mu}{\frac{\sigma}{\sqrt{n}}}[/tex]

[tex]z = \frac{0.25 - 0.28}{\frac{\sqrt{0.28*0.72}}{\sqrt{1800}}}[/tex]

[tex]z = -2.83[/tex]

P-value of the test and decision:

The p-value of the test is the probability of finding a sample proportion below 0.25, which is the p-value of Z = -2.83.

Looking at the z-table, z = -2.83 has a p-value of 0.0023.

The p-value of the test is 0.0023 < 0.02, which means that there is sufficient evidence at the 0.02 level to dispute the company's claim.

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