Amazon has as a target an order fill rate of 97% or more (fill rate is the percentage of complete orders shipped). The management of the Arizona warehouse believes its making that target. A sample of 25 orders resulted on a mean fill rate of 96.5%. The known standard deviation for fill rate is 1.5%.
a) Develop the null and alternative hypothesis.
b) What is the p-value?
c) At a = 0.05 what is your conclusion?
d) At a = 0.01 what is your conclusion?