To perform this test, select
.For example, Company A manufactures televisions and has counted the number of units with defective screens they produce each quarter for the previous ten years. Management decides that 20 defective units per quarter is the maximum acceptable rate, and they want to determine whether their factory meets this specification.
H_{0}: λ = λ_{0} | The population rate of occurrence (λ) equals the hypothesized rate of occurrence (λ_{0}). |
H_{1}: λ ≠ λ_{0} | The population rate of occurrence (λ) differs from the hypothesized rate of occurrence (λ_{0}). |
H_{1}: λ > λ_{0} | The population rate of occurrence (λ) is greater than the hypothesized rate of occurrence (λ_{0}). |
H_{1}: λ < λ_{0} | The population rate of occurrence (λ) is less than the hypothesized rate of occurrence (λ_{0}). |