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A company that packages peanuts states that at a maximum 6% of the peanut shells contain no nuts. At random, 300 peanuts were selected and 21 of them were empty. With a significance level of 1% can the statement made by the company be accepted? |
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Answer» The population proportion P = 6% = 0.06 The null hypothesis: H0 : P ≤ 0.06 Alternative hypothesis: H1 : P > 0.06 For α = 1% = 0.01. Zα = 2.33 The test statistic is P + 2.33 (√(0.06)(0.094)/300) = 0.092 (where n = 300, P = 0.06, Q = 0.94) Since the calculated value is less than the table value, 0.092 < 2.33,we accept the null hypothesis H0 . Hence the statement of the company can be accepted. |
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