In a study of sotre checkout -scanners 1234 items were checked for price accuaracy, 20 checked items were found to be overcharges, and 1214 were not overcharges. use a 0.05 significance level to test the claim that with scanners 1% of sales are overcharges.
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In a study of sotre checkout -scanners 1234 items were checked for price accuaracy, 20 checked items were found to be overcharges, and 1214 were not overcharges. use a 0.05 significance level to test the claim that with scanners 1% of sales are overcharges.
A. state the original claim in symbolic form:
B. Write the hpothesis pair starting ith the null hypothesis.
C. Calculate the test statistic:
Given that,
Claim = the proportion of sales are overcharge is different from 1%
Level of significance = 5%
Total number of sales n= 1234
number of sales overcharge = x= 20
The value of np and n (1-p) are 20 and 1214 which are higher than 10.
So we can say the binomial distribution with parameters n,p can be normally approximated.
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