1. In a hospital's shipment of 3,500 insulin syringes, 14 were unusable due to defects. Is this sufficient evidence to reject future shipments from this supplier if the hospital's quality standard requires 99.7 percent of the syringes to be acceptable?

(a) May normality of the sample proportion p be assumed?

(b) Conduct a hypothesis test at 1 percent level of significance. Clearly state the hypotheses, decision rule and conclude accordingly.

2. If you repeated a hypothesis test 1,000 times ( in other words, 1,000 different sample of same size from the same population), how many times would you expect to commit a Type I error, assuming the null hypothesis is true, if (a) ? = .05, (b) ? = .01