A soft drink dispenser is set to automatically dispense drinks and ice in 8 oz. cups. The machine is set to fill the cups with 7.25 oz. so that the liquid will not run over the top of the cup. The company is getting complaints that the machine is filling the cups too full and spilling over. When the machine is operating properly, only 1% of the cups will not be filled properly. The production manager conducted a one-tail hypothesis test at the 0.01 level to check the machine. A sample of 50 fills was measured and only one of the fills was found to have more liquid than the set 7.25 oz expected.

Using the P value approach formulate (clearly showing all your steps) carry out a hypothesis test, to examine the possibility that the machine could be faulty.