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# Hypothesis, Level of Significance and Critical Value

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A PC manufacturer claims that no more than 5% of their machines are defective. In a random sample of 100 machines, it is found that 8 are defective, does the sample data provide sufficient evidence to conclude that the defective is more than 5%. Use the hypothesis testing procedure and alpha = .10. Be sure to address points a - h below.

a. State the null and alternative hypothesis

b. state the level of significance

c. find the critical value(s) and clearly show the rejection and non-rejection regions.

##### Solution Summary

The solution states the hypothesis, level of significance and critical value for the given problem.

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• MSc, Osmania University
• MSc, Indian Institute of Technology - Roorkee (I.I.T.-ROORKEE)
• BSc, Banaras Hindu University
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