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 hypotheses should they test?

A) H0: p < 0.98 HA: p > 0.98
B) H0: p > 0.98 HA: p = 0.98
C) H0: p = 0.98 HA: p < 0.98
D) H0: p = 0.98 HA: p ≠ 0.98
E) H0: p = 0.98 HA: p > 0.98