Two suppliers' shipments are tested for defect rates. The contract accepts the shipment with the smallest rate. Do the defect rates vary between suppliers?

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Multiple Choice

Two suppliers' shipments are tested for defect rates. The contract accepts the shipment with the smallest rate. Do the defect rates vary between suppliers?

Explanation:
The main idea is comparing two proportions. Each supplier has a defect rate, which is a proportion of items defective in their shipments. To test whether these rates differ, you use a two-proportion z-test. This test looks at the observed defect proportions from each supplier (p1 and p2) and asks if the difference between them is large enough to conclude a real difference in defect rates, rather than just random variation. Under the null hypothesis that the true defect rates are the same, you combine the data to get a pooled proportion and compute a z statistic to see how extreme the observed difference is under a standard normal distribution. If the sample sizes are large enough (np and n(1−p) reasonably large for both suppliers), this approximation is appropriate. Why the other options don’t fit: a one-proportion z-test compares a single proportion to a fixed value, not two groups. a two-sample t-test compares means, not proportions. a matched pairs t-test is for paired measurements on the same subjects (before/after or matched pairs), not independent samples from two different suppliers.

The main idea is comparing two proportions. Each supplier has a defect rate, which is a proportion of items defective in their shipments. To test whether these rates differ, you use a two-proportion z-test. This test looks at the observed defect proportions from each supplier (p1 and p2) and asks if the difference between them is large enough to conclude a real difference in defect rates, rather than just random variation. Under the null hypothesis that the true defect rates are the same, you combine the data to get a pooled proportion and compute a z statistic to see how extreme the observed difference is under a standard normal distribution. If the sample sizes are large enough (np and n(1−p) reasonably large for both suppliers), this approximation is appropriate.

Why the other options don’t fit: a one-proportion z-test compares a single proportion to a fixed value, not two groups. a two-sample t-test compares means, not proportions. a matched pairs t-test is for paired measurements on the same subjects (before/after or matched pairs), not independent samples from two different suppliers.

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