A PC manufacturer claims that no more than 2% of their machines are defective. In a random sample of 100 machines, it is found that 5% are defective. The manufacturer claims this is a fluke of the sample.
At a .01 level of significance, test the manufacture's claim, and explain your answer.
MegaStat Output
Hypothesis test for proportion vs. hypothesized value
Observed Hypothesized
0.05 0.02 p (as decimal)
5/100 2/100 p (as fraction)
5 2 X
100 100 n
0.014 std. error
2.14 z
.0161 p-value (one-tailed, upper