A quality control manager thinks that there is a higher defective rate on the production line than the advertised value of p = 0.025. She does a hypothesis test with a significance level of 0.05. Symbolically, the null and alternative hypothesis are as follows: H0: p = 0.025 and Ha: p > 0.025. She calculates a p-value for the hypothesis test of defective light bulbs to be approximately 0.067. Choose the correct interpretation for the p-value.
◦ The p-value tells us that the probability of concluding that the defect rate is equal to 0.025, when in fact it is greater than 0.025, is approximately 0.067.
◦ The p-value tells us that the result is significantly higher than the advertised value using a significance level of 0.05.
◦ The p-value tells us that if the defect rate is 0.025, then the probability that she would observe the percentage she actually observed or higher is 0.067. At a significance level of 0.05, this would not be an unusual outcome.
◦ The p-value tells us that the true population rate of defective light bulbs is approximately 0.067.
Production efficiency.
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