Historically 25% of all students taking an statistics course have failed (i.e. receive a grade below C). Professor Han thinks that she has a better method of teacher statistics to business students. She is given a random sample of 40 business student to teach last Spring. The students are given the traditional exam. Only 3 of the students fail to obtain a C or better.

a). Is this evidence at 1% level that Professor Han's method produces less than 25% grades less than a C?

b). What is the p-value for your test?