A sample of 1500 computer chips revealed that 32% of the chips do not fail in the first 1000 hours of their use. The company's promotional literature claimed that above 29% do not fail in the first 1000 hours of their use. Is there sufficient evidence at the 0.02 level to support the company's claim

Yes, we have sufficient evidence at the 0.02 level to support the company's claim.

Step-by-step explanation:

We are given that a sample of 1500 computer chips revealed that 32% of the chips do not fail in the first 1000 hours of their use. The company's promotional literature claimed that above 29% do not fail in the first 1000 hours of their use.

Let Null Hypothesis, : p 0.29  {means that less than or equal to 29% do not fail in the first 1000 hours of their use}

Alternate Hypothesis, : p > 0.29  {means that more than 29% do not fail in the first 1000 hours of their use}

The test statics that will be used here is One-sample proportions test;

          T.S. =  ~ N(0,1)

where, = proportion of chips that do not fail in the first 1000 hours of their use = 32%

            n = sample of chips = 1500

So, test statistics =

                              = 2.491

Now, at 0.02 level of significance the z table gives critical value of 2.054. Since our test statistics is more than the critical value of z so we have sufficient evidence to reject null hypothesis as it fall in the rejection region.

Therefore, we conclude that more than 29% do not fail in the first 1000 hours of their use which means we have sufficient evidence at the 0.02 level to support the company's claim.

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