3. A company claims that only 3% of its products are defective. A simple random sample (SRS) of 250 of their products yielded 8 defective items. Do these sample data suggest that the company’s claim is too low? (alpha = .05)
N=250
claim of defective items in percent converted to decimal (.03)
Multiply the N value of 250 by .03 to get =7.5
Np >10, 250(.03) >10 because 7.5 < 10 terminate test, data result are unreliable because the sample size is too small.
Nq >10, 250(.97)=242.5 >10 obviously but the test failed in the previous portion (np).
