The Next Questions Are Based On The Following Information:
The dean of a business college in the Midwest claims that he can correctly identify whether a student is a finance major or a music industry management major by the way the student dresses.Suppose in actuality that he can correctly identify finance majors 84% of the time,while 16% of the time he mistakenly identifies a music industry management major as a finance major.Presented with one student and asked to identify the major of this student (who is either a finance or music industry management major),the dean considers this to be a hypothesis test with the null hypothesis being that the student is a finance major and the alternative that the student is a music industry management major.
-An assembly line will be shut down for maintenance if the defect rate exceeds 2.3%.Suppose you adopt a 5% significance level and take a random sample of 200 items from the assembly line and compute the proportion of defective items.For what values of the sample proportion will the assembly line be shut down?
A)0.034
B)0.038
C)0.036
D)0.040

Question

Quizplus · Accepted Answer

The critical value for a one-tailed test with a 5% significance level and a sample size of 200 is 1.645. The margin of error is therefore 1.645 times the standard error, which is sqrt(0.023*(1-0.023)/200) = 0.019. The upper bound for the sample proportion is therefore 0.023 + 0.019 = 0.042, so the assembly line will be shut down if the sample proportion is greater than or equal to 0.040 (the closest answer choice).

The Next Questions Are Based on the Following Information