Research in gaming industry showed that 12% of all slot machines in the United States stop working each and every year. Short's Game Arcade has 45 slot machines and only 3 failed last year. Employ the five-step hypothesis-testing procedure at the 0.01 significance level to test whether this data contradicts the research report.
1. State the null hypothesis and the alternate hypothesis.
2. State the decision rule for 0.01 significance level.
3. Compute the value of the test statistic
4. Determine the p-value