0.012.620.05There is insufficient evidence to warrant rejection of the manager's claim that production is not really out of control.0.00440.0072? = 0.03? = 0.05p 0.03There is sufficient evidence to warrant rejection of the manager's claim that production is not really out of control.

Identify the null hypothesis, alternative hypothesis, test statistic, P-value, conclusion about the null hypothesis, and final conclusion that addresses the original claim. In a random sample of 500 items, 25 are defective, resulting in manufacturing process defect rate of 5%. The manager claims that this is only a sample fluctuation and production is not really out of control. At the 0.05 level of significance, test the claim that the rate of defects is more than 3%, and thus the process is out of control. Null Hypothesis, HO Alternative Hypothesis, H1 Test Statistic, Z P-value Significance level Conclusion