In a study of store checkout-scanners, 1234 items were checked for price accuracy; 20 checked items were found to be overcharges, and 1214 were not overcharges. Use a 0.05 significance level to test the claim that with scanners, 1% of sales are overcharges.

A. State the original claim in symbolic form: (Answer)

B. Write the hypothesis pair: (Answer)

C. Calculate the test statistic: (Answer)

D. Calculate the P-value: (Answer)

E. State your decision about the hypotheses: (Answer)

F. Put down a final, concluding statement that addresses the claim: (Answer)

G. Before scanners were introduced, the overcharge rate was estimated to be about 1%. Based on the results of the study, do scanners appear to help consumers avoid overcharges?: Yes, because a smaller proportion of the sampled items are overcharges. It appears that the error rate is better with scanners than was before.