Reference no: EM132849166

Part 1.

A cell company claims that at least 15% of its customers have 2 or more lines. The company selects a random sample of 500 customers and finds that 65 have 2 or more telephone lines. If α = 0.02, show all key steps and test whether the proportion is less than 15% using the critical value approach.

Part 2.

A generic medicine that claims to reduce fever and pain comes in 5 oz. bottles. Ted was suspicious about the volume of contents. He measured the volume of 15 randomly selected bottles and noticed that the mean is only 4.6 oz. with a standard deviation of 0.7 oz. Is the volume of the content not 5 oz.? Use the critical value approach to arrive at a conclusion. Show all key steps of the test of hypothesis. Use 0.10 level of significance. Assume that the volume of the contents follows a normal distribution.