Europe is projected to have a Lego shortage this Christams. Production has been ramped up in an effort to get some more Legos to Europe before the holidays. However you can't ship out defective products and we're not sure how running the machines faster will effect quality control. It is your job to determine if a shipment of 10 million Legos can be sent out. You can't send out a batch is more than 1% of the batch is bad. 16,589 is the minimum amount of legos that need to be sampled in order for the statistics to be trusthworthy. 1400 legos were sampled and 1.5% of them were bad.  A) Perform a hypothesis test on this sample at the alpha=0.1 using the null hypothesis that the batch contains exactly 1% of defective legos. B) Interpret this hypothesis test in the context of the problem.

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Author:Amos Gilat
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Europe is projected to have a Lego shortage this Christams. Production has been ramped up in an effort to get some more Legos to Europe before the holidays. However you can't ship out defective products and we're not sure how running the machines faster will effect quality control. It is your job to determine if a shipment of 10 million Legos can be sent out. You can't send out a batch is more than 1% of the batch is bad. 16,589 is the minimum amount of legos that need to be sampled in order for the statistics to be trusthworthy. 1400 legos were sampled and 1.5% of them were bad. 

A) Perform a hypothesis test on this sample at the alpha=0.1 using the null hypothesis that the batch contains exactly 1% of defective legos.

B) Interpret this hypothesis test in the context of the problem. 

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