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Damaged goods
An appliance manufacturer stock- piles washers and dryers in a large warehouse for ship- ment to retail stores. Sometimes in handling them the appliances get damaged. Even though the damage may be minor, the company must sell those machines at dras- tically reduced prices. The company goal is to keep the proportion of damaged machines below 2%. One day an inspector randomly checks 60 washers and finds that 5 of them have scratches or dents. Is this strong evidence that the warehouse is failing to meet the company goal? Test an appropriate hypothesis and state your conclusion. Be sure the appropriate assumptions and conditions are sat- isfied before you proceed.
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