1. If we wish to test a hypothesis to provide evidence supporting the claim that fewer than 5 percent of the units produced by a process are defective, formulate the null and alternative hypotheses.
2. What condition must be satisfied in order for the methods of this section to be appropriate?
METHODS AND APPLICATIONS
3. Suppose we test H0: p = .3 versus Ha: p * .3 and that a random sample of n = 100 gives a sample proportion pˆ = .20.
a. Test H0 versus Ha at the .01 level of significance by using critical values. What do you conclude?
b. Find the p-value for this test.
c. Use the p-value to test H0 versus Ha by setting a equal to .10, .05, .01, and .001. What do you conclude at each value of a?