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Mathematics Semester 3  STPM  Chapter 5 Hypothesis Testing

                                        Step 4 : Calculate the value of the test statistic.
                                              ^
                                              p – p
                                        z =
                                             p(1 – p)
                                                n

                                          =   0.7767 – 0.82
                                             0.82(1 – 0.82)
                                                 300
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                                          = –1.952
                                        Step 5 : Make a decision.
                                        We compare the value of the test statistic to the critical value. This value of
                                        z = –1.952 is greater than the critical value of –2.33 and thus it falls in the
                                        nonrejection region. We do not reject H  which states that the rate of germination
                                                                        0
                                        for the hybrid plant is 0.82.




                      Example 10

                   A manufacturing company has submitted a claim that 85% of components produced by a certain process
                   are non-defective. A new process is introduced to lower the proportion of defective components below
                   the current 15%. In a sample of 100 components produced with the new process, 7 are defective. Is this
                   evidence sufficient to conclude that the process has been improved? Use the 5% significance level.

                   Solution:            Let p be the proportion of defective components produced by the existing process
                                        and  p be the corresponding proportion for the new improved process. Given
                                            ^
                                                                  ^
                                        information: p = 0.15, n = 100, p =   7   .
                                                                      100
                                        We are going to test whether the evidence is sufficient to justify the improvement.
                                        The significance level a is given as 0.05.
                                        The following are the five steps in testing the hypothesis.
                                        Step 1 : Formulate the null hypothesis and the alternative hypothesis.
                                        H : p = 0.15,
                                         0
                                        H : p , 0.15.
                                         1                                                                   5
                                        Step 2 : Specify the significance level.
                                        a = 0.05.

                                        Step 3 : Select an appropriate probability distribution and determine the critical
                                        region.

                                        We have
                                        np = 100 × 0.15
                                           = 15
                                        nq = 100 × 0.85
                                           = 85
                                        Since both np and nq are both greater than 5, the sample size is large. We will
                                        use the normal distribution.




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         05 STPM Math(T) T3.indd   253                                                                28/10/2021   10:24 AM
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