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In: Statistics and Probability

A manufacturer considers his production process to be out of control when defects exceed 5%. In...

A manufacturer considers his production process to be out of control when defects exceed 5%. In a random sample of 105 items, the defect rate is .9% but the manager claims that this is only a sample fluctuation and production is not really out of control. At the 0.01 level of significance, test the manager's claim.

H0=

H1=

Test Statistic =

Critical Value= or P-value=

Conclusion=

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