a) A manufacturer of apple phone charges claims that only 4% of his production is defective. In a random sample of 120 items, the defect rate is 4.99%. At the 1% level of significance, test the manager's claim. i. State the null and alternative hypotheses for the test. [2] ii. Calculate the value of the test statistic for this test. [2] iii. Determine the critical region(s) for this test. [2] iv. State the conclusion of this test. Give a reason for your answer.

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter12: Probability
Section12.4: Discrete Random Variables; Applications To Decision Making
Problem 10E
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a) A manufacturer of apple phone charges claims that only 4% of his production is
defective. In a random sample of 120 items, the defect rate is 4.99%. At the 1% level of
significance, test the manager's claim.
i. State the null and alternative hypotheses for the test. [2]
ii. Calculate the value of the test statistic for this test. [2]
iii. Determine the critical region(s) for this test. [2]
iv. State the conclusion of this test. Give a reason for your answer.  

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