mathstatistics
posted by Sherri
An appliance manufacturer stockplies washers and dryers in a large warehouse for shipment to retail stores. Sometimes in handling then the appliances get damaged. Even though the damage may be minor, the company must sell those machines at drastically reduced prices. The company goal is to keep the level of damaged machines below 2%. One day an inspector randomly checks 60 washers and finds that 5 of them have scratches or dents. Is this strong evidence that the warehouse is failing to meet the company goal? Test an appropriate hypothesis and state you conclusion. Be sure the appropriate assumptions and conditions are satisfied before you proceed.
p= proportion of washes that are damaged
H0:p=.002 Ha:p>.002
Plausible Independence: assume washes are independent of each other
success/failure (.002)(.60)=12>10
10% condition: there are at least 600 washers
z=.0834.05 (divided by)/square root (.002)(.098) (divided by) 60
equals=.00122
okay now that is how much I have been able to figure out but I don't know if all of that is correct and I need to figure out the pvalue and a conclusion. please help?

economyst
Ok, I'm a little lost in your answer. I would say:
H0:p=.02, Ha:p>.02
The expected mean number of damages is p*n = .02*60 = 1.2
The formula for the standard deviation for a binominal distribution is sqrt(n*p*q) (where q=1p)
so, sd = sqrt(60*.02*.98) = 1.0844
the alpha for 95% confidence interval (one tailed) is 1.645. We will reject the null hypothesis if we number of damaged washers is greater than 1.2+1.645*sd = 2.98. Since we observed 5 damage washer, reject the null hypothesis.
I hope this helps.
Respond to this Question
Similar Questions

Economic
Consumers who can store large quantities of bulk food items can save money by shopping at A. convenience stores. B. warehouse stores. C.large supermarkets. D. discount stores Is it c? 
math
At a laundromat there is 1 more dryer than there are washers. Write a rule to find the number of d dryers for every w washers. 
stats math
An appliance store sells washing machines and dryers among other things. The average sale on washers and dryers is $530 with a standard deviation of $100. Suppose that sales figures on washers and dryers are normally distributed. If … 
Statistics help
A trucking firm delivers appliances for a large retail operation. The packages (or crates) have a mean weight of 306 lb. and a variance of 2209. (Give your answers correct to four decimal places.) (a) If a truck can carry 3940 lb. … 
Math help
A trucking firm delivers appliances for a large retail operation. The packages (or crates) have a mean weight of 306 lb. and a variance of 2209. (Give your answers correct to four decimal places.) (a) If a truck can carry 3940 lb. … 
Math Help
A trucking firm delivers appliances for a large retail operation. The packages (or crates) have a mean weight of 306 lb. and a variance of 2209. (Give your answers correct to four decimal places.) (a) If a truck can carry 3940 lb. … 
math
A trucking firm delivers appliances for a large retail operation. The packages (or crates) have a mean weight of 306 lb. and a variance of 2209. (Give your answers correct to four decimal places.) (a) If a truck can carry 3940 lb. … 
Math
An appliance company has a warehouse and two terminals. To minimize shipping costs, the manager must decide how many appliances should be shipped to each terminal. There is a total supply of 1200 units in the warehouse and a demand … 
Math, statistics
A trucking firm delivers appliances for a large retail operation. The packages (or crates) have a mean weight of 306 lb. and a variance of 2209. (Give your answers correct to four decimal places.) (a) If a truck can carry 4070 lb. … 
statistics and probability
5. A fastener company is supplying washers to a manufacturer of kitchen appliances who has specified that the outside diameter be 0.500 ± 0.025 inch. Measurements made on 250 washers show that the process is in good statistical control, …