Question: Henderson Corporation makes metal sheets, among other products. When the process that is used to make metal sheets works properly, 92% of the metal sheets contain no defects, 5% have one defect each, and 3% have two or more defects each. The quality control inspectors at the company take samples of metal sheets quite often and check them for defects. If the distribution of defects for a sample is significantly different from the above-mentioned percentage distribution, the process is stopped and adjusted. A recent sample of 300 sheets produced the frequency distribution of defects listed in the following table.
Number of defects None One Two or more
Number of metal sheets 262 24 14
Does the evidence from this sample suggest that the process needs an adjustment? Use α =.01.