Final answer:
To decide on using n=10, n=20, or n=25 for faucet testing, we must evaluate the binomial probabilities for Type I and II errors with a threshold of 0.10. We seek an n such that np and nq are both greater than 5, allowing us to approximate the binomial with a normal distribution and accurately determine the rejection region.
Step-by-step explanation:
To determine whether to use n = 10, n = 20, or n = 25 faucets in the test, we must consider the Binomial distribution. This considers two probabilities: a probability of false positive (Type I error) when p is actually 0.10 and a probability of false negative (Type II error) when p is actually 0.30. The acceptable threshold for each error is 0.10. By calculating the binomial probabilities for different values of n and determining the X that would be too large to commence production, we can find the appropriate sample size and the rejection region.
For the Binomial distribution, we use the formula P(X) with the mean μ = np and standard deviation σ = √npq, where q = 1 - p. For the case of p = 0.10 and n = 10, np > 5 and nq > 5, so the normal approximation could be used. However, with n = 10, it is highly likely that both types of errors would exceed the acceptable threshold of 0.10. Increasing n to 20 or 25 raises np and nq numbers above 5, which is preferable for a more accurate approximation to the normal distribution.
Calculations must be performed for each n to determine the X value at which production would stop (the rejection region). Software or a graphing calculator can be used to calculate exact binomial probabilities, or one could use the normal approximation to the binomial distribution once np and nq are both sufficiently large.]