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A candy company that makes colored candies claims that 10% of the candies it produces are green and that bags are packed randomly. In a really large bag of candies, we found 12% of 500 candies were green. Is this evidence that the manufacturing process is out of control and has made too many greens? Explain.

Answer 1

 

THe test statistic is (p' - p0) / sqrt (  p0(1-p0)/n    ) where p0 = 10% and p'=12% is the observed

 

 (12% - 10%) / sqrt(  (10% * 90%)/ 500 )  =

 

   2%/ ( sqrt( 9/5)) =   0.01490712

 

No.