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How do you test a manufacturer's claim that defective machines are not a fluke of a sample?

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A PC manufacturer claims that no more than 2% of their machines are defective. In a random sample fo 100 machines, it is found that 5 percent are defective. The manufacturer claims this is a fluke of the sample. At a 0.01 level of significance, test the manufacturer's claim and explain your answer.

Test and CI for One Proportion

Test of p = 0.02 vs p > 0.02

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Solution Summary

The solution provides step by step method for computing the confidence interval is given in this solution in an attached Word document.

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H0: p =0.02
H1: p > 0.02
Test Statistic used is Z test .
Significance level = ...

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