A Truck Company Wants On-Time Delivery for 98% of the Parts

Multiple Choice

A truck company wants on-time delivery for 98% of the parts they order from a metal manufacturing plant. They have been ordering from Hudson Manufacturing but will switch to a new, cheaper manufacturer (Steel-R-Us) unless there is evidence that this new manufacturer cannot meet the 98% on-time goal. As a test the truck company purchases a random sample of metal parts from Steel-R-Us, and then determines if these parts were delivered on-time. Which hypothesis should they test?

A) $\mathrm{H}_{0}: p>0.98$
$\mathrm{H}_{A}: p=0.98$

B) $\mathrm{H}_{0}: p=0.98$
$\mathrm{H}_{A}: p<0.98$

C) $\mathrm{H}_{0}: p=0.98$
$\mathrm{H}_{A}: p>0.98$

D) $\mathrm{H}_{0}: p<0.98$
$\mathrm{H}_{A}: p>0.98$

E) $\mathrm{H}_{0}: p=0.98$
$\mathrm{H}_{A}: p \times 0.98$