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Math Help - solving a statistic problem using significance level of 0.05

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    solving a statistic problem using significance level of 0.05

    A manufacturer finds that in a random sample of 100 of its tvs, 96% have no defects. The manufacturer wishes to make a claim about the percentage of nodefective tvs and is prepared to exaggerate. What is the highest rate of nondefective tvs that the manufacturer could claim in the following condition?
    His claim would not be rejected at the 0.05 significant level if this sample data were used. Assume that a left tailed hypothesis test would be used.

    a.)98.4%
    b.)96.5%
    c.)96.6%
    d.)98.2%
    Last edited by mr fantastic; June 20th 2009 at 11:41 PM. Reason: Restored question deleted by OP
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    Quote Originally Posted by tennisair View Post
    A manufacturer finds that in a random sample of 100 of its tvs, 96% have no defects. The manufacturer wishes to make a claim about the percentage of nodefective tvs and is prepared to exaggerate. What is the highest rate of nondefective tvs that the manufacturer could claim in the following condition?
    His claim would not be rejected at the 0.05 significant level if this sample data were used. Assume that a left tailed hypothesis test would be used.

    a.)98.4%
    b.)96.5%
    c.)96.6%
    d.)98.2%
    It looks to me like the manufacturer can exaggerate to a greater extent than the above options allow .... Since n is large:

    \Pr\left( p < \hat{p} + 1.64 \sqrt{\frac{\hat{p}(1 - \hat{p})}{n}} \right) = 0.95

    where in your problem \hat{p} = 0.96 and n = 100.
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    clarification

    so the answer is 96.5% or 96.6%?

    Restored edit by OP: so I plugged p and n into the equation you posted..but I didn't get any of the multiple choice solutions. did i do this right.? i actually got .050949..would I subtract that from 100 to get the highest rate of percent?
    Last edited by mr fantastic; June 20th 2009 at 11:51 PM. Reason: Restored original post deleted by OP
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    So what is the final outcome to this?
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    Quote Originally Posted by jmsal View Post
    So what is the final outcome to this?
    If more help is needed please say what part of my first reply needs further explanation.
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    I was referring to the answer.
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