Question

A seller has acquired 120 randomly selected items from a vendor for his stores. He has an allowance of 10% for damaged items. Of the 120 items acquired from the vendor, the seller found that 15 are damaged. He decides to test whether the population proportion of the vendor's items exceeds the seller's allowable limit. State the null and alternative hypotheses.

Answer 1

Explanation:

Given that a seller has acquired 120 randomly selected items from a vendor for his stores. He has an allowance of 10% for damaged items. Of the 120 items acquired from the vendor, the seller found that 15 are damaged.

Population proportion= 0.10

Sample proportion = 15/120 = 0.125

To test whether the population proportion of the vendor's items exceeds the seller's allowable limit,

the hypotheses would be

`H_0: p = 0.10\\H_a: p >0.10`

(right tailed test)