Hypothesis Testing of Processing Orders
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The Web-based company Oh Baby! Gifts has a goal of processing 95 percent of its orders on the same day they are received. If 485 out of the next 500 orders are processed on the same day, would this prove that they are exceeding their goal, using α = .025?
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Solution Summary
This solution conducts a statistical analysis by testing the null and alternative hypothesis by calculating and comparing the test statistic to the p-value. A decision is then made to accept or reject the null hypothesis. All steps are shown in an Excel file.
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