A manufacturer of intraocular lenses is qualifying a new grinding machine and will qualify the machine if there is evidence that percentage of polished lenses that contain sur¬face defects does not exceed 2%. A random sample of 240 lenses contains 5 defective lenses.
(a) Formulate and test an appropriate set of hypotheses to determine if the machine can be qualified. Use a = 0.05. Find the P-value.
(b) Explain how the question in part (a) could be answered with confidence interval.