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Question: National Electronics Company buys parts from two subsidiaries. The quality control department at this company wanted to check if the distribution of good and defective parts is the same for the supplies of parts received from both subsidiaries. The quality control inspector selected a sample of 300 parts received from Subsidiary A and a sample of 400 parts received from Subsidiary B. These parts were checked for being good or defective. The following table records the results of this investigation.
Subsidiary A Subsidiary B
Good 284 381
Defective 16 19
Using the 5% significance level, test the null hypothesis that the distributions of good and defective parts are the same for both subsidiaries.
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