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 8.5% are defective. The manufacturer claims this is a fluke of the sample. At a .02 level of significance, test the manufacture’s claim, and explain your answer..
MegaStat Output
Hypothesis test for proportion vs. hypothesized value
Observed Hypothesized
.085 .05 p (as decimal)
9/100 5/100 p (as fraction)
8.5 5.0 x
100 100 n
0.0218 std. error
1.61 Z
.0541 p-value (one-tailed, upper)
Our null hypothesis is
H0: p=5%
H1: p<5%
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