10.37 Supervisor Tom Choi at Tempe Equipment Company is concerned that material is not arriving as promptly as needed at work cells. A new kanban system has been installed, but there seems to be some delay in getting the material moved to the work cells so that the job can begin promptly. Choi is interested in determining how much delay there is on the part of his highly paid machinists. Ideally, the delay would be close to zero. He has asked his assistant to determine the delay factor among his 10 work cells. The assistant collects the data on a random basis over the next 2 weeks and determines that of the 1,200 observations, 105 were made while the operators were waiting for materials. Use a 95% confidence level and a {3% acceptable error. What report does he give to Choi?