Lowering Defect Rate in Computer Chip Manufacturing Company

Question

A company manufacturing computer chips finds that 8% of all chips manufactured are defective.  Management is concerned that high employee turnover is partially responsible for the high defect rate.  In an effort to decrease the percentage of defective chips, management decides to provide additional training to those employees hired within the last year.  After training was implemented, a sample of 450 chips revealed only 27 defects.  Using a 1% significance level, is there evidence that the additional training effective in lowering the defect rate.

A)         Write the null and alternative hypotheses.

B)         What is the alpha level and critical value?

C)         What is the value of the test statistic?

D)        What is the p-value of the test?

E)         State your conclusion with evidence.

Summary

This question belongs to statistics and discusses about null and alternative hypotheses on lowering defect rate in a computer chip manufacturing company.

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