A large company produces an equal number of brand-name lightbulbs and generic lightbulbs. The director of
quality control sets guidelines that production will be stopped if there is evidence that the proportion of all
lightbulbs that are defective is greater than 0.10. The director also believes that the proportion of brand-name
lightbulbs that are defective is not equal to the proportion of generic lightbulbs that are defective. Therefore, the
director wants to estimate the average of the two proportions.
To estimate the proportion of brand-name lightbulbs that are defective, a simple random sample of
400 brand-name lightbulbs is taken and 44 are found to be defective. Let X represent the number of
brand-name lightbulbs that are defective in a sample of 400, and let pX represent the proportion of all
brand-name lightbulbs that are defective. It is reasonable to assume that X is a binomial random variable.