- IB
- Question Type 7: Performing a hypothesis test on population mean using the normal approximation of a poisson distribution
A factory produces shampoo with 4 faulty products on average for every 200 products. The manager installs a better machine and inspects the next 1400 products, finding 14 faulty items. At a 5% significance level, test whether there is evidence that the new machine has reduced the fault rate. Use the normal approximation to the Poisson distribution.
A factory originally has a mean of 4 faulty shampoos per 200. After installing a new line, 1000 shampoos are checked and 30 faults are found. Test at 1% significance (one‐sided decrease) whether the fault rate has reduced. Approximate using the normal approximation to Poisson.