A manufacturer of computer chips claims that less than 10% of his products are d

Question

A manufacturer of computer chips claims that less than 10% of his products are defective. When 1,000 chips were drawn from a large production, 7.5% were found to be defective. a. What is the population of interest? b. What is the sample? c. What is the parameter? d. What is the statistic? e. Does the value 10% refer to the parameter or to the statistic? f. Is the value 7.5% a parameter or a statistic? g. Explain briefly how the statistic can be used to make inferences about the parameter to test the claim.

Explanation / Answer

a) A population of interest: All computer chips of a manufacturer. ( Large production )

b) A number of chips drawn from a large production.

c) Parameter: Proportion.

d) Statistic: Sample proportion.

e) The value of 10% refers to the parameter.

f) The value of 7.5% is a statistic because it is a value of sample proportion.

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