Answer :
Answer:
The test statistic is [tex]z = -2.1[/tex]
The p-value of the test is 0.0358 > 0.01, which means that the defective rates of the two suppliers are not significant different at the 1% significance level.
Step-by-step explanation:
Before testing the hypothesis, we need to understand the central limit theorem and subtraction of normal variables.
Central Limit Theorem
The Central Limit Theorem estabilishes that, for a normally distributed random variable X, with mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex], the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean [tex]\mu[/tex] and standard deviation [tex]s = \frac{\sigma}{\sqrt{n}}[/tex].
For a skewed variable, the Central Limit Theorem can also be applied, as long as n is at least 30.
For a proportion p in a sample of size n, the sampling distribution of the sample proportion will be approximately normal with mean [tex]\mu = p[/tex] and standard deviation [tex]s = \sqrt{\frac{p(1-p)}{n}}[/tex]
Subtraction between normal variables:
When two normal variables are subtracted, the mean is the difference of the means, while the standard deviation is the square root of the sum of the variances.
A simple random sample of 400 parts from supplier 1 finds 20 defective.
This means that:
[tex]p_1 = \frac{20}{400} = 0.05, s_1 = \sqrt{\frac{0.05*0.95}{400}} = 0.0109[/tex]
A simple random sample of 200 parts from supplier 2 finds 20 defective.
This means that:
[tex]p_2 = \frac{20}{200} = 0.1, s_2 = \sqrt{\frac{0.1*0.9}{200}} = 0.0212[/tex]
Let p1 and p2 be the proportion of all parts from suppliers 1 and 2, respectively, that are defective. Test whether the defective rates of the parts from two suppliers are significant different at the 1% significance level.
At the null hypothesis, we test if they are equal, that is, if the subtraction of the proportions is 0. So
[tex]H_0: p_1 - p_2 = 0[/tex]
At the alternate of the null hypothesis, we test if they are different, that is, if the subtraction of the proportions is different of 0. So
[tex]H_a: p_1 - p_2 \neq 0[/tex]
The test statistic is:
[tex]z = \frac{X - \mu}{s}[/tex]
In which X is the sample mean, [tex]\mu[/tex] is the value tested at the null hypothesis and s is the standard error.
0 is tested at the null hypothesis:
This means that [tex]\mu = 0[/tex]
From the sample proportions:
[tex]X = p_1 - p_2 = 0.05 - 0.1 = -0.05[/tex]
[tex]s = \sqrt{s_1^2+s_2^2} = \sqrt{0.0109^2 + 0.0212^2} = 0.0238[/tex]
Value of the test statistic:
[tex]z = \frac{X - \mu}{s}[/tex]
[tex]z = \frac{-0.05 - 0}{0.0238}[/tex]
[tex]z = -2.1[/tex]
P-value of the test and decision:
The p-value of the test is the probability that the sample proportion differs from 0 by at least 0.05, that is, P(|z| < 2.1), which is 2 multiplied by the p-value of Z = -2.1.
Z = -2.1 has a p-value of 0.0179
2*0.0179 = 0.0358.
The p-value of the test is 0.0358 > 0.01, which means that the defective rates of the two suppliers are not significant different at the 1% significance level.