First, we check the conditions. The sample is not necessarily random, so to proceed we must assume the blades are all independent; for this sample we will suppose this assumption is reasonable, but the engineer would be more knowledgeable as to whether this assumption is appropriate. The success-failure condition also holds for each sample. Thus, the difference in sample proportions,
\(0.958 - 0.899 = 0.059\text{,}\) can be said to come from a nearly normal distribution.
The standard error is computed using the two sample proportions since we do not use a pooled proportion for this context:
\begin{gather*}
SE = \sqrt{\frac{0.958(1-0.958)}{1000} + \frac{0.899(1-0.899)}{1000}} = 0.0114
\end{gather*}
In this hypothesis test, because the null is that
\(p_1 - p_2 = 0.03\text{,}\) the sample proportions were used for the standard error calculation rather than a pooled proportion.
Next, we compute the test statistic and use it to find the p-value, which is depicted in
FigureΒ 6.2.16.
\begin{gather*}
Z = \frac{\text{point estimate} - \text{null value}}{SE} = \frac{0.059 - 0.03}{0.0114} = 2.54
\end{gather*}
Using a standard normal distribution for this test statistic, we identify the right tail area as 0.006, and we double it to get the p-value: 0.012. We reject the null hypothesis because 0.012 is less than 0.05. Since we observed a larger-than-3% increase in blades that pass inspection, we have statistically significant evidence that the higher-quality blades pass inspection
more than 3% as often as the currently used blades, exceeding the companyβs claims.