Solution-Compute the proportion of defective items

Compute the proportion of defective items

Reference no: EM131914139

Some people who bought ABC server systems complained about having received defective systems. The industry standard for such systems has been ninety-five percent non-defective systems. In a sample of 82 units sold, 4 units were defective.

Compute the proportion of defective items in the sample.
Compute the standard error of p¯.
Compute the test statistic for p¯.
Compute the critical value at 97% confidence
Using the critical value approach, test to see if the percentage of defective systems produced by ABC has exceeded the industry standard.
Show that the p-value approach results in the same conclusion as that of part b.
What is your conclusion? Is ABC significantly better or worse than the industry?

Reference no: EM131914139

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Compute the proportion of defective items

Reference no: EM131914139

Reference no: EM131914139

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