Sample fluctuation and production


A manufacturer considers his production procedure to be out of control when defects exceed 3%. In random sample of 80 items, the defect rate is 5% but the manager claims that this is only sample fluctuation and production is not really out of control. At the 0.01 level of significance, do the data provide sufficient evidence that the percentage of defects exceeds 3%?

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Basic Statistics: Sample fluctuation and production
Reference No:- TGS0868244

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