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Solution:
Given information:
Sample size, n = 20 bottles
No. of bottles survive the accelerated test, x = 14 bottles
Sample proportion, p = x/n = 14/20 = 0.70
Hypotheses:
Null hypothesis, H0: p = 0.90
Alternative hypothesis, Ha: p < 0.90
(left-tailed test)
Statisticshelpdesk
Test statistic: Z =
Z=
p p
p(1 p) / n
0.70 0.90
= 2.981
0.90 * (1 0.90) / 20
Conclusion: Since the p-value of the test statistic is less than 0.01, we reject the null
hypothesis at 1% level of significance. Hence, the evidence is sufficient to conclude that the
proportion of all bottles that survive the accelerated test is less than 0.90. This suggests
that the proposed warranty would be modified.
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