Question 3 A machine is set to produce no more than 0.07 defectives when properly adjusted. After the machine had been in operation for some time, a sample of one hundred pieces was tested. Twenty...

Question 3

A machine is set to produce no more than 0.07 defectives when properly adjusted. After the machine had been in operation for some time, a sample of one hundred pieces was tested. Twenty defectives pieces were observed. Is there evidence at the 5% level of significance that the machine needs readjustment?

(a) State the null and alternative hypotheses for this test.

(b) Compute the value of the Test Statistic?

(c) State the p-value for this test.

(d) State the conclusion for the test. Give reasons for your answer.