The company however claimed that at most 5 of their produce


In a sample of 400 parts manufactured by a factory, the number of defective parts were found to be 30. The company, however, claimed that at most 5% of their produce is defective. We wish to test the company's claim.

Answer the next 3 questions.

  1. Is the hypothesis: left tailed, right tailed, two tailed
  2. True or False. We fail to reject the Null hypothesis at 5% level of significance. 
  3. True or False. We do not have enough evidence to reject the Null Hypothesis at 1% level of significance.

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Finance Basics: The company however claimed that at most 5 of their produce
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