A candy company that makes colored candies claims that 10% of the candies it pro

Question

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. Select the correct choice below and fill in the answer box to complete your choice. A. Yes because this observation is standard deviation(s) below the mean. B. no because this observation is standard deviation(s) above the mean. C. Yes, because this observation is standard deviation(s) above the mean. D. No, because this observation is standard deviation(s) below the mean.

Explanation / Answer

p =0.10 , ,sd = ( pq/n) = sqrt(0.1*0.9/500) = 0.0134164

p^ = 0.12

Z = (0.12 -0.1 ) /0.0134164 = 1.490712   

since z-score is 1.49 < 1.96   

critical region : - z> 1.96 or z < -1.96

no , because the observation is 1.49 sd above the mean .

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