Conduct appropriate hypothesis test using significance level

Reference no: EM13114620

An automobile manufacturer gives a 5 years/60,000 mile warranty on its drive train. Historically, 7% of this manufacturer's cars have required service under this warranty. Recently, a design team proposed an improvement that should extend the drive train's life. A random sample of 200 cars underwent 60,000 miles of road testing, in which tests the driver train of 12 cars failed.

a. Conduct the most appropriate hypothesis test using a 0.05 significance level.

b. Construct a 95% confidence interval for the true proportion of automobiles with drive trains that fail.

Reference no: EM13114620

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