A supplier of DVDs claims that no more than 1% of the DVDs are defective. In a random sample of 600 DVDs, it is found that 3% are defective, but the supplier claims that this is only a sample fluctuation. At the 0.01 level of significance, test the supplier's claim that no more than 1% are defective.

A) Do not reject the null hypothesis and conclude that there is evidence to support the claim that more than 1% of the DVDs are defective.
B) Reject the null hypothesis and conclude that there is insufficient evidence to support the claim that more than 1% of the DVDs are defective.
C) Do not reject the null hypothesis and conclude that there is insufficient evidence to support the claim that more than 1% of the DVDs are defective.
D) Reject the null hypothesis and conclude that there is sufficient evidence to support the claim that more than 1% of the DVDs are defective.

Question

A supplier of DVDs claims that no more than 1% of the DVDs are defective. In a random sample of 600 DVDs, it is found that 3% are defective, but the supplier claims that this is only a sample fluctuation. At the 0.01 level of significance, test the supplier's claim that no more than 1% are defective.

A) Do not reject the null hypothesis and conclude that there is evidence to support the claim that more than 1% of the DVDs are defective.
B) Reject the null hypothesis and conclude that there is insufficient evidence to support the claim that more than 1% of the DVDs are defective.
C) Do not reject the null hypothesis and conclude that there is insufficient evidence to support the claim that more than 1% of the DVDs are defective.
D) Reject the null hypothesis and conclude that there is sufficient evidence to support the claim that more than 1% of the DVDs are defective.

Quizplus · Accepted Answer

The null hypothesis is that the proportion of defective DVDs is 1% or less. With a sample proportion of 3% and a significance level of 0.01, the test statistic will likely fall in the critical region, leading to the rejection of the null hypothesis. Thus, there is sufficient evidence to support the claim that more than 1% of the DVDs are defective.

A Supplier of DVDs Claims That No More Than 1