3. Suppose that in manufacturing a very sensitive electronic component, a company and its customers have tolerated a 2% defective rate. Recently, however, several customers have been complaining that there seem to be more defectives than in the past. Given that the company has made recent modifications to its manufacturing process, it is wondering if in fact the defective rate has increased from 2%. For quality assurance purposes, you decide to randomly select 1,000 of these electronic components before they are shipped to customers. Of the 1,000 components, you find 25 that are defective. Assume that the company produces a very large number of these components on any given day. a) Set up an appropriate hypothesis to test whether or not the defect rate has increased. b) Before proceeding to test your hypothesis, check that all assumptions and conditions are satisfied for such a test. c) Conduct the test using a .05 level of significance (alpha) and state your decision about whether or not you believe that the defect rate has increased. d) What would be the minimum number of defectives in a random sample of 1,000 would you need to find in order to statistically decide that the defect rate exceeds .02 (again, assuming a .05 level of significance).

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3. Suppose that in manufacturing a very sensitive electronic component, a company and its
customers have tolerated a 2% defective rate. Recently, however, several customers have been
complaining that there seem to be more defectives than in the past. Given that the company
has made recent modifications to its manufacturing process, it is wondering if in fact the
defective rate has increased from 2%. For quality assurance purposes, you decide to randomly
select 1,000 of these electronic components before they are shipped to customers. Of the 1,000
components, you find 25 that are defective. Assume that the company produces a very large
number of these components on any given day.
a) Set up an appropriate hypothesis to test whether or not the defect rate has increased.
b) Before proceeding to test your hypothesis, check that all assumptions and conditions are
satisfied for such a test.
c) Conduct the test using a .05 level of significance (alpha) and state your decision about
whether or not you believe that the defect rate has increased.
d) What would be the minimum number of defectives in a random sample of 1,000 would you
need to find in order to statistically decide that the defect rate exceeds .02 (again, assuming
a .05 level of significance).
Transcribed Image Text:3. Suppose that in manufacturing a very sensitive electronic component, a company and its customers have tolerated a 2% defective rate. Recently, however, several customers have been complaining that there seem to be more defectives than in the past. Given that the company has made recent modifications to its manufacturing process, it is wondering if in fact the defective rate has increased from 2%. For quality assurance purposes, you decide to randomly select 1,000 of these electronic components before they are shipped to customers. Of the 1,000 components, you find 25 that are defective. Assume that the company produces a very large number of these components on any given day. a) Set up an appropriate hypothesis to test whether or not the defect rate has increased. b) Before proceeding to test your hypothesis, check that all assumptions and conditions are satisfied for such a test. c) Conduct the test using a .05 level of significance (alpha) and state your decision about whether or not you believe that the defect rate has increased. d) What would be the minimum number of defectives in a random sample of 1,000 would you need to find in order to statistically decide that the defect rate exceeds .02 (again, assuming a .05 level of significance).
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