A manufacturer of alkaline batteries is concerned about the proportion of defective batteries it ships to retailers.
As long as the proportion of defective batteries in a shipment is below 2%, the manufacturer is not at risk of losing market share. It randomly selects 300 batteries from a very large shipment and finds 10 defective batteries in the sample.
- What is the width of the 95% confidence interval for the proportion of defective batteries in that shipment.
- What is the p-value of the appropriate test for checking if the manufacturer is at risk of losing market share?
- What is the value of the appropriate test statistic for checking if the manufacturer is at risk of losing market share?