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    PC Manufacturer: Hypothesis Test for Proportion vs. Hypothesized Value

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    A PC manufacturer claims that no more than 2% of their machines are defective. In a random sample of 100 machines, it is found that 5% are defective. The manufacturer claims this is a fluke of the sample.

    At a .01 level of significance, test the manufacture's claim, and explain your answer.

    MegaStat Output
    Hypothesis test for proportion vs. hypothesized value

    Observed Hypothesized

    0.05 0.02 p (as decimal)

    5/100 2/100 p (as fraction)

    5 2 X

    100 100 n

    0.014 std. error

    2.14 z

    .0161 p-value (one-tailed, upper

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    Solution Summary

    The solution provides a 27-word interpretation of mega stat output for a Hypothesis test for population proportion.