Step 1 :The null hypothesis in this case is that the actual failure rate is 47%, as stated in the company's promotional literature. The alternative hypothesis is that the actual failure rate is not 47%.
Step 2 :We are given a sample of 1700 chips, of which 44% fail in the first 1000 hours. We need to perform a hypothesis test to determine whether we should reject the null hypothesis or fail to reject it.
Step 3 :We can use a z-test for proportions to perform this hypothesis test. The z-score is calculated as follows: \(z = (p_{hat} - p0) / \sqrt{(p0 * (1 - p0)) / n}\) where \(p_{hat}\) is the sample proportion, \(p0\) is the proportion under the null hypothesis, and \(n\) is the sample size.
Step 4 :The critical z-score for a two-tailed test at the 0.02 level is approximately ±2.33. If the calculated z-score is greater than 2.33 or less than -2.33, we reject the null hypothesis. Otherwise, we fail to reject the null hypothesis.
Step 5 :Let's calculate the z-score. We have \(n = 1700\), \(p_{hat} = 0.44\), \(p0 = 0.47\). The calculated z-score is -2.48, which is less than -2.33.
Step 6 :Therefore, we reject the null hypothesis that the actual failure rate is 47%.
Step 7 :Final Answer: \(\boxed{\text{Reject Null Hypothesis}}\)