Question #2021396: Z-test


Question: An electrical equipment manufacturer received a shipment of 16,000 circuit boards from a supplier. The company will not accept the shipment if the proportion of defective boards is greater than 3% and management wants to commend the supplier if the proportions of defective boards are less than 3%. Management wants to know if the number of defective boards in the entire shipment of 16,000 is more or less than 3%, but testing all the boards would be prohibitively expensive. Instead, a random sample of boards is tested. From a random sample of 200 boards (out of 16,000), eight boards were defective. What will be your advice to the management: accept or reject the shipment?

Solution: The solution consists of 255 words (2 pages)
Deliverables: Word Document

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