Acceptable Quality Limit (AQL) is a widely used industrial quality management measure that sets a threshold for the poorest quality level that can be tolerated for a product. The AQL for minor defects, i.e., defects that are not likely to reduce the usability of the product for its intended purpose, is often set at 4%, which means that a shipment with up to 4% of products having minor defects is accepted by a buyer.

A retail garments buyer makes a decision about rejecting shipments based a hypothesis test ofH₀: p = 0.04 versus H_a: p > 0.04. During one such inspection exercise, a simple random sample of 1200 garments is taken from a larger shipment of 30,000 garments, of which 55 garments are found to have a minor defect. Carry out a significance test at the 5% level. What can you conclude? Make sure to report the test statistic and p-value (and clearly state what you are comparing them with).