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Hypothesis Testing for Population Proportions

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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 alpha = .025?

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Solution Summary

In this solution, a step by step method for testing the hypothesis under the 5 step approach is discussed. A Word document is attached which contains the full solution, including all of the required calculations.

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