Question: Reporting company changes to the SEC. The SEC requires a company to file Form 8 -K to report material changes in its financial condition or operation. Common material events are changes in directors, auditors, and assets disposition. Up until 2004 , companies had 15 business days to submit Form \(8-K\). Currently, the SEC requires that the form be submitted within 4 business days of the material event (Sarbanes-Oxley Act, Section 409). Previous research has indicated that as high as \(10 \%\) of firms were in violation of the old, 15 -day rule. Old Dominion University Accounting Professor Rob Pinsker conducted a study to determine if firms with material changes were able to comply with the new "4-day" rule (Information Systems Mid-Year Meeting. 2004). In a sample of 462 firms with material events, only 23 were in violation of the new 4 -day requirement for filing. Are you able to conclude that the true percentage of firms in violation of the new 4 -day rule for reporting material changes is less than \(10 \%\) ? Make your inference at a significance level of \(\alpha=01\).

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