Box Co. is a company that produces cardboard boxes. Management of the manufacturing plant in Chicago have told the Cooperative bosses in New York that currently on 5% of boxes produced at the Chicago plant are faulty and need to be replaced. However, on a recent quality control check it was found that 10 boxes out of 100 did not meet the appropriate requirements and were labelled as faulty. Run a simulation using the web applet on Blackboard to determine whether or not you believe the percentage of faulty boxes produced by the Chicago plant is over 5%. a) State the probability of success that you used.
b) State the sample size you used.
c) State the number of samples you used.
d) Draw a picture of the graph created by the simulation and label the axes.
e) State the two different hypotheses that we use to explain why the sample of 100 boxes contained 10 faulty boxes.
f) Write a paragraph below explaining what conclusion you have reached and why. Use evidence from the simulation to support your conclusion.