Question

A machine in a factory does not to be repaired if it produces less than 10% defective parts among the large lot of items it produces in a day. A random sample of 100 items from the day's production contains 8 defectives, and the supervisor says the machine does not need to be repaired. Does the evidence support his decision at alpha = .01?

Conduct each hypothesis test below using both the critical value/rejection region and p-value methods (separate and label each method) and showing each of the 5 steps explicitly. Do not round any table values. Round test statistics to the nearest hundredth, critical values to 3 decimal places, and p-values to 4 decimal values.

Answer 1