Discuss the below:
Q1: A supplier of 3.5" disks clams that only 1% of the disks are defective. In a random sample of 600 disks, it is found that 3% are defective, but the supplier claims that this is simply a sample fluctuation. At the 0.01 level of significance, test the supplier's claim that 1% are defective.
True or false: There is not sufficient evidence to warrant rejection of the claim that 1% are defective.
True
False
Q2: Find the value of the linear correlation coefficient r.
The paired data consist of the costs of advertising (in thousands of dollars) and the number of products sold (in thousands):
Cost 9 2 3 4 2 5 9 10
Number 85 52 55 68 67 86 83 73
-0.071
0.708
0.246
0.235