Complete question :
When testing gas pumps for accuracy, fuel-quality enforcement specialists tested pumps and found that 1294 of them were not pumping accurately (within 3.3 oz when 5 gal is pumped), and 5705 pumps were accurate. Use a 0.01 significance level to test the claim of an industry representative that less than 20% of the pumps are inaccurate. Use the P-value method and use the normal distribution as an approximation to the binomial distribution.
Answer:
H0: p=0.2
H1: p<0.2 ;
- 3.16 ;
0.0008 ;
p value is < α ; We reject the Null.
Therefore we conclude that there is sufficient evidence to support the claim that less than 20% of the pumps are inaccurate
Explanation:
The null hypothesis ; H0 : p = 20%
Alternative ; H1 : p < 20%
Sample size, n = 1294 + 5705 = 6999
p = inaccurate / total
p = 1294 / 6999 = 0.1849
The test statistic (Z) :
(P - P0) ÷ sqrt((P0(1 - P0)) /n)
P0 = 0.2
(0.1849 - 0.2) ÷ sqrt((0.2 * 0.8)/6999))
−0.0151 ÷ 0.0047812
= - 3.1582029
= - 3.16
Pvalue : using the Pvalue from Zstatistic calculator at α = 0.01
P value = 0.000789
P value = 0.0008 (4 decimal places).
Since p value is < α ; We reject the Null.
Therefore we conclude that there is sufficient evidence to support the claim that less than 20% of the pumps are inaccurate