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The auditor for a large corporation routinely monitors cash disbursements. As part of this process, the auditor examines check request forms to determine whether they

The auditor for a large corporation routinely monitors cash disbursements. As part of this process, the auditor examines check request forms to determine whether they have been properly approved. Improper approval can occur in several ways. For instance, the check may have no approval, the check request might be missing, the approval might be written by an unauthorized person, or the dollar limit of the authorizing person might be exceeded. Suppose that the auditor selects a random sample of 625 checks that have been approved in the last month. The auditor finds that 22 of these 625 checks have been improperly approved. Let p be the proportion of all checks that are now improperly approved. Conduct the appropriate hypothesis test to determine if the sample provides sufficient statistical evidence to conclude that the rate of improper approvals is less than 5 percent.

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