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Question - A bolt manufacturer considers its manufacturing process is working correctly if no more than 5% of bolts are defective.
(i) Assuming the manufacturing process is producing 5% defectives, what is the probability that a sample of 20 randomly selected bolts will contain one (1) or less defective bolts?
(ii) Suppose the reliability of the manufacturing process is unknown. The manufacturer wants to determine the reliability of the manufacturing process. State the null and alternative hypotheses of this situation.
(iii) In a random sample of 20 bolts, 4 defectives are found. If the manufacturing process was declared not to be working properly based on the sample result when the process is indeed working, explain what type of error would it be?
(iv) Calculate the probability of the error described in part (iii).
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