Answer:
The p-value of the test is 0.0853 > 0.05, which means that there is not enough evidence to reject the manufacturer's claim based on this observation.
Step-by-step explanation:
A manufacturer of nails claims that only 4% of its nails are defective.
At the null hypothesis, we test if the proportion is of 4%, that is:
![H_0: p = 0.04](https://tex.z-dn.net/?f=H_0%3A%20p%20%3D%200.04)
At the alternative hypothesis, we test if the proportion is more than 4%, that is:
![H_a: p > 0.04](https://tex.z-dn.net/?f=H_a%3A%20p%20%3E%200.04)
The test statistic is:
![z = \frac{X - \mu}{\frac{\sigma}{\sqrt{n}}}](https://tex.z-dn.net/?f=z%20%3D%20%5Cfrac%7BX%20-%20%5Cmu%7D%7B%5Cfrac%7B%5Csigma%7D%7B%5Csqrt%7Bn%7D%7D%7D)
In which X is the sample mean,
is the value tested at the null hypothesis,
is the standard deviation and n is the size of the sample.
4% is tested at the null hypothesis
This means that ![\mu = 0.04, \sigma = \sqrt{0.04*0.96}](https://tex.z-dn.net/?f=%5Cmu%20%3D%200.04%2C%20%5Csigma%20%3D%20%5Csqrt%7B0.04%2A0.96%7D)
A random sample of 20 nails is selected, and it is found that two of them, 10%, are defective.
This means that ![n = 20, X = 0.1](https://tex.z-dn.net/?f=n%20%3D%2020%2C%20X%20%3D%200.1)
Value of the test statistic:
![z = \frac{X - \mu}{\frac{\sigma}{\sqrt{n}}}](https://tex.z-dn.net/?f=z%20%3D%20%5Cfrac%7BX%20-%20%5Cmu%7D%7B%5Cfrac%7B%5Csigma%7D%7B%5Csqrt%7Bn%7D%7D%7D)
![z = \frac{0.1 - 0.04}{\frac{\sqrt{0.04*0.96}}{\sqrt{20}}}](https://tex.z-dn.net/?f=z%20%3D%20%5Cfrac%7B0.1%20-%200.04%7D%7B%5Cfrac%7B%5Csqrt%7B0.04%2A0.96%7D%7D%7B%5Csqrt%7B20%7D%7D%7D)
![z = 1.37](https://tex.z-dn.net/?f=z%20%3D%201.37)
P-value of the test and decision:
Considering an standard significance level of 0.05.
The p-value of the test is the probability of finding a sample proportion above 0.1, which is 1 subtracted by the p-value of z = 1.37.
Looking at the z-table, z = 1.37 has a p-value of 0.9147
1 - 0.9147 = 0.0853
The p-value of the test is 0.0853 > 0.05, which means that there is not enough evidence to reject the manufacturer's claim based on this observation.