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Answer:
Since the pvalue of the test is 0.2743 > 0.1, the threshold probably was met.
Step-by-step explanation:
The widget manufacturing company had established a threshold of 60% preferring the proposed new widget to move forward with producing the new widgets.
This means that at the null hypothesis we test if the proportion is at least 60%, that is:
And the alternate hypothesis is:
The test statistic is:
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.
0.6 is tested at the null hypothesis:
This means that:
Three hundred thirty-eight of 575 respondents reported preferring the proposed new widget.
This means that
Value of the test-statistic:
Pvalue of the test and decision:
We want to find the probability of a proportion of 0.5878 or lower, which is the pvalue of z = -0.6.
Looking at the z-table, z = -0.6 has a pvalue of 0.2743.
Since 0.2743 > 0.1, the threshold probably was met.
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