(See Solution) A manufacturer considers his production process to be out of control when defects exceed 3%. In a random sample of 80 items, the defect rate
Question: A manufacturer considers his production process to be out of control when defects exceed 3%. In a random sample of 80 items, the defect rate is 5% 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, do the data provide sufficient evidence that the percentage of defects exceeds 3%.
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