Question

An assembly line produces gears for the transmissions of a Toyota sedan. This particular assembly line produces over 25,000 gears per day. To test the machine the inspector will randomly sample 1,000 gears and run a diagnostic on each. If the machine is working normally, only 2% of the gears will fail the diagnostic. On a particular inspection, 30 of 1000 gears fail the diagnostic. The inspector is worried that this is too high, is this the result significant at the 1% level?

Answer 1

25,000-1,000=24,000-2%= 22,500