A new quality control system has been introduced at a company to detect the percentage of defective items throughout the day, and based on the results, to decide whether to continue using the machine or replace it. The company will continue to use the machine if over 80% of the items are not defective. A random sample if 400 items is taken, of which 365 are in perfect condition. Using hypothesis testing, what would you tell the business owner who is unsure whether to keep or change the machine.

In hypothesis testing, we start by defining the null hypothesis (H0) and the alternative hypothesis…

Answered: A new quality control system has been…

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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A new quality control system has been introduced at a company to detect the percentage of defective items throughout the day, and based on the results, to decide whether to continue using the machine or replace it. The company will continue to use the machine if over 80% of the items are not defective. A random sample if 400 items is taken, of which 365 are in perfect condition. Using hypothesis testing, what would you tell the business owner who is unsure whether to keep or change the machine.

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