The consortium, suspecting that the percentage is relatively low decides to apply the following decision rule: if the percentage is actually 15% or more, the consortium will seriously consider negotiating a settlement. However, if the percentage is less than 15%, they will vigorously defend any lawsuit. Use hypothesis testing with Level of significance is 0.05

a. Find Z, p-value and confidence intervals.

b. What is Type I or Type II error and does it occur in this case?

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