A manufacturer finds that in a random sample of 100 of its CD players, 96% have no defects. The manufacturer wishes to make a claim about the percentage of nondefective CD players and is prepared to exaggerate. What is the highest rate of nondefective CD players that the manufacturer
Could claim under the following condition?

His claim would not be rejected at the 0.05 significance level if this sample data were used. Assume that a left-tailed hypothesis test would be performed.
A) 98.4%
B) 96.5%
C) 98.2%
D) 96.6%

Question

A manufacturer finds that in a random sample of 100 of its CD players, 96% have no defects. The manufacturer wishes to make a claim about the percentage of nondefective CD players and is prepared to exaggerate. What is the highest rate of nondefective CD players that the manufacturer
Could claim under the following condition?

His claim would not be rejected at the 0.05 significance level if this sample data were used. Assume that a left-tailed hypothesis test would be performed.
A) 98.4%
B) 96.5%
C) 98.2%
D) 96.6%

Quizplus · Accepted Answer

The manufacturer can claim up to 98.2% nondefective rate without the claim being rejected at the 0.05 significance level, based on the sample proportion and the standard error calculation for a left-tailed test.

A Manufacturer Finds That in a Random Sample of 100