Garrett Cervantes
12/25/2023 · Primary School

7 A mechanical component fails, on average, 3 times out of every 10 . An engineer designs a new system of manufacture that he believes reduces the likelihood of failure. He tests a sample of 20 components made using his new system. a Describe the test statistic. b State suitable null and alternative hypotheses. c Using a \( 5 \% \) level of significance, find the critical region for a test to check his belief, ( 2 marks), ( 3 marks) d Write down the actual significance level of the test.

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a) The test statistic is calculated as \(\frac{\hat{p} - p_0}{\sqrt{\frac{p_0(1-p_0)}{n}}}\), where \(\hat{p}\) is the sample proportion, \(p_0\) is the hypothesized proportion, and \(n\) is the sample size. b) Null Hypothesis (\(H_0\)): The new system doesn't reduce failure rate (\(p = 0.3\)). Alternative Hypothesis (\(H_1\)): The new system reduces failure rate (\(p < 0.3\)). c) The critical region for a 5% significance level is when the test statistic is less than -1.645. d) The actual significance level is the p-value, which is the probability of observing a test statistic as extreme as the one calculated, assuming the null hypothesis is true.

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