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Develop parts from the same vendor

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Reference no: EM132844487

A vendor of a plastic part claims that (94+0.255)% of their parts clear the quality standard test in the first attempt. An OEM (Original Equipment Manufacturer) is considering to develop a plastic part for their new launched vehicle, but wonders about the claim of the vendor whether (94+0.255)% is an overestimate. OEM decides to conduct a hypothesis test at 5% significance level and found that out of 16 parts, 12 parts passed the quality test in the first attempt. What OEM decides about the claim of the vendor? Should OEM continue to develop parts from the same vendor? Show the critical region on a plot.

Reference no: EM132844487

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