Reference no: EM132488238

1. The Eaton Company sells breakable china through a mail-order system. The company has been very profitable, but one of its major problems is freight damage. The company has been purchasing two different packaging materials from two different suppliers, under the assumption that there was no difference in the proportion of damaged shipments resulting from the type of packing material used.

A sales manager thinks less packages are getting damaged when packed using Material A and decides to test his claim. A random sample of 250 orders using Shipping Material A had 12 orders damaged and a random sample of 300 orders using Shipping Material B had 19 orders damaged. Assuming all conditions are met, test if the packages shipped using Material A has a smaller proportion of damaged product at α = 0.05.

A. Write out the hypotheses for this test.

H0:

HA:

B. Find the test statistic and p-value for this test. Show which calculator function you are using.

C. Using either the p-value or the test statistic what is our decision about the H0.

D. What conclusion did you come to in context to this test?

E. Should that start shipping all packages using Shipping Material A? Explain.