Some people who bought X-game gaming systems complained about having received defective systems. The industry standard for such systems has been 98% non-defective systems.
-In a sample of 120 units sold, 6 units were defective.
-Compute the standard errorof
-At 95% confidence using the ‘critical value approach’, test to see if the percentage of defective systems by X-Game has exceeded the industry standard.
The solution computes the percentage of defective systems X-game has exceeded the industry standard. The standard error is given.