# Hypothesis Testing

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A MANUFACTURER OF COMPUTER CHIPS CLAIMS THAT MORE THAN 90% OF HIS PRODUCTS CONFORM TO SPECIFICATIONS. IN A RANDOM SAMPLE OF 1000 CHIPS DRAWN FROM A LARGE PRODUCTION RUN, 875 WERE ACCEPTABLE. DO THE DATA PROVIDE SUFFICIENT EVIDENCE AT THE 1% LEVEL OF SIGNIFICANCE TO CONCLUDE THE MANUFACTURER'S CLAIM IS FALSE?

a. State the Null and Alternative hypotheses.

b. Define the test statistic.

c. Develop the decision rule.

d. Compute the test statistic.

e. State the conclusion.

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##### Solution Summary

The solution addresses A MANUFACTURER OF COMPUTER CHIPS CLAIMS THAT MORE THAN 90% OF HIS PRODUCTS CONFORM TO SPECIFICATIONS. IN A RANDOM SAMPLE OF 1000 CHIPS DRAWN FROM A LARGE PRODUCTION RUN, 875 WERE ACCEPTABLE. DO THE DATA PROVIDE SUFFICIENT EVIDENCE AT THE 1% LEVEL OF SIGNIFICANCE TO CONCLUDE THE MANUFACTURER'S CLAIM IS FALSE?

a. State the Null and Alternative hypotheses.

b. Define the test statistic.

c. Develop the decision rule.

d. Compute the test statistic.

e. State the conclusion.

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