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Mathematics, 20.04.2020 23:05 zianebonankenotdbev
You are the engineer in charge of evaluating a new product for potential use in a hydraulic system. The manufacturer has sent 100 randomly chosen samples for you to test. You plan to go through with the deal as long as you can prove that less than 8% of the products you subsequently purchase will be defective. The engineering and business teams at your company believe a 90% confidence level is appropriate for the test.
(a) Specify the null and alternative hypotheses for your test.
(b) Describe (in words) a Type I error for this deal.
(c) Out of the 100 samples provided by the manufacturer, at most how many can be defective for you to agree to use the new product?
(d) For better or worse, your boss convinces you to go through with the deal. Turns out the minimum order is 5000 pieces. Assuming you purchase that many pieces of the new product, and that you found 6 defective pieces out of the 100, generate a 90% two-sided confidence interval for the number of pieces that will be flawed.
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