We appreciate your visit to A manufacturer of large kitchen appliances keeps track of the costs of warranty claims Management suspects that 75 of all warranty claims are invalid 20. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
A manufacturer of large kitchen appliances keeps track of the costs of warranty claims. Management suspects that 75%
of all warranty claims are invalid, 20% cost the company less than $500, and 5% of them cost the company more than
$500. To investigate this belief, a random sample of 80 warranty claims is selected from their vast records of past
warranty claims. The management would like to know if the distribution of claim results differs from what they suspect.
Are the conditions for inference met?
A. No, the random condition is not met.
B. No, the 10% condition is not met.
C. ✓ No, the Large Counts condition is not met.
D. Yes, all of the conditions for inference are met.
(ITS C)
