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A machine is set to produce no more than 0.07 defectives when properly adjusted. After the machine had been in operation for some time, a

A machine is set to produce no more than 0.07 defectives when properly adjusted. After the machine had been in operation for some time, a sample of one hundred pieces was tested. Twenty defective pieces were observed. Is there evidence at the 5 percent level that the machine needs readjustment? [10 marks] (1) State the hypotheses to be tested: Ho: Hi: (ii) What is the Test Statistic? (iii) State the critical region: (iv) Evaluate the Test Statistic (v) Should the null hypothesis be accepted or rejected

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