A manufacturer of TV sets claims that at least 98% of its TV set scan last more than 10 years without needing a single repair. In order to verify and challenge this claim, a consumer group randomly selected 800 consumers who had owned a TV set made by this manufacturer for 10 years. Of these 800 consumers, 60 said that their TV sets needed some repair at least once.
a. Is there significant evidence showing that the manufacturer’s claim is false? Test using α = 0.01.
b. Do the data show that the manufacturer’s actual no-repair rate does not even reach 95%? Use α = 0.01.