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Question:

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Step: 1

Given that : x_1 = 10 " , " n_1 = 200 " , " x_2 = 20 " , " n_2 = 300

a) Estimate the fraction nonconforming for each process are

The point estimate for the Sample proportions are

hatp_1 =x_1 /n_1 = 10 / 200 = 0.05

hatp_2 =x_2 /n_2 = 20 / 300 = 0.0667

Explanation

Let population proportion = process 1 and popualtiopn prorpotion 2 = process 2

Step: 2

b) Test claim; Test the hypothesis that the two process have identical fractions nonconforming p_1 !=p_2

Test hypothesis are

H_0 : p_1 - p_2 = 0

H_a : p_1 - p_2 != 0

Explanation

Two-tailed hypothesis test

Pooled proportion barP= (x_1+x_2)/(n_1+n_2) = ( 10 + 20 ) / ( 200 + 300 )= 0.0600

Step: 3

Test statistic:

z = ( hatp1 − hatp2 )/ sqrt( barP ∗(1 − barP ) ∗(1/ n1 + 1/ n2))

= (0.0500 − 0.07)/ sqrt(0.0600 ∗(1 − 0.0600) ∗(1/ 200 + 1/ 300))

= − 0.768776007

= − 0.77

The value of the test statistic z = -0.77

p-value: 2P(z< -0.77 )= 0.4413

Explanation

Using excel p-value is =2*[NORMSDIST(z)]

Decision:

Fail to Reject the null hypothesis because p-value > alpha

Conclusion

There is insufficient evidence to support the claim that difference in fraction nonconforming between the two processes.

Step: 4

c)

90% Confidence interval for the (p1-p2) is =(hatp_1 - hatp_2) +- z_c sqrt[(hatp_1(1-hatp_1))/n_1+(hatp_2*(1-hatp_2))/n_2]

C = 0.90 " , " alpha = 0.10

Critical value is z_c =+- 1.645

Explanation

Usind excel critical value is =NORM.S.INV(1-α/2)

90% confidence interval for the difference between (p1-p2) are

Lower limit

LL = ( hatp1 − hatp2 )− zc ∗sqrt[( hatp1 ∗(1 − hatp1))/ n1 + ( hatp2 ∗(1 − hatp2))/ n2]

= (0.0500 − 0.0667) − 1.65 ∗sqrt((0.0500 ∗(1 − 0.0500))/ 200 + (0.0667 ∗(1 − 0.0667))/ 300

= − 0.0167 − 0.0347

= − 0.0514

Upper limit

UL = ( hatp1 − hatp2 )+ zc ∗sqrt[( hatp1 ∗(1 − hatp1 ))/ n1 + ( hatp2 ∗(1 − hatp2 ))/ n2]

= (0.0500 − 0.0667) + 1.645 ∗sqrt((0.0500 ∗(1 − 0.0500))/ 200 + (0.0667 ∗(1 − 0.0667))/ 300)

= − 0.0167 + 0.0347

= 0.0180

95% confidence interval for the difference between (p1-p2) are ( -0.0514 " , " 0.0180 )

Final Answer

Test hypothesis are

H_0 : p_1 - p_2 = 0

H_a : p_1 - p_2 != 0

The value of the test statistic z = -0.77

p-value: 2P(z< -0.77 )= 0.4413

Decision:

Fail to Reject the null hypothesis because p-value > alpha

Conclusion

There is insufficient evidence to support the claim that difference in fraction nonconforming between the two processes.

95% confidence interval for the difference between (p1-p2) are ( -0.0514 " , " 0.0180 )

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