Question

Identify the CRITICAL VALUES(S) used in a hypothesis test of the following claim and sample data:

Claim: "The proportion of defective tablets manufactured in this factory is less than 6%."
A random sample of 500 tablets from this factory is selected, and it is found that 20 of them were defective. Test the claim at the 0.05 significance level.
a. -1.883
b. -1.645
c. -1.96
d. -0.102

Answer 1

-1.96

Explanation:

Significance level or alpha level is the probability of rejecting the null hypothesis when null hypothesis is true. It is considered as a probability of making a wrong decision. It is a statistical test which determines probability of type I error. If the obtained probability is equal of less than critical probability value then reject the null hypothesis. In this question the sample of 500 defective tablets is under test. 20 tablets found to be defective so the null hypothesis is accepted as less than 6% of tablets are defective.