Question

Telly Baker Accountants, Inc. performs auditing for several manufacturing firms in the U.S. midwest. The head...

Telly Baker Accountants, Inc. performs auditing for several manufacturing firms in the U.S. midwest. The head of the audit department, Ken Uad is concerned about clerical errors in the work and estimates that more than 20% of the audits contain clerical errors. A random sample of 400 audits was taken and 100 were found to contain at least one clerical error. Do these data support Ken’s belief that the proportion of errors is more than 20%?

Perform the appropriate hypothesis test using a significance level of 0.05.

Show all the steps.

Do your work in an Excel file. Make Excel do the test statistic calculation.

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