In: Statistics and Probability
A regulatory agency suspected that more than 10% of all cars of a certain automobile model are unsafe. A random sample of 16 cars finds that 6 of these sampled cars are unsafe.
(a) Test the appropriate hypotheses, keeping the significance level at no more than 0.05. Give your decision rule, test statistic value, p-value, and conclusion.
(b) What is a 90% confidence interval for the true proportion of unsafe cars in the population?