In a hospital’s shipment of 3,500 insulin syringes, 14 were unusable due to defects. (a) At α = .05, is this sufficient evidence to reject future shipments from this supplier if the hospital’s quality standard requires 99.7 percent of the syringes to be acceptable? State the hypotheses and decision rule. (b) May normality be assumed? (c) Explain the effects of Type I error and Type II error. (d) Find the p-value. (e) Would reducing α be a good idea? Explain the pros and cons.
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