I find the stapling feature for the photocopier in our dept to be not very reliable. The industry standard is that only 2% of items should be stapled incorrectly. In a sample of 120 handouts made for a course, 6 were badly stapled.
(a)At a 0.025 significance level using the critical value approach, test to see if the % error is higher than the industry standard. Clearly state your hypothesis and conclusions.
(b) How many incorrectly stapled handouts would have to be in the sample of 120 for you to change your conclusion in (a)? Round to whole handouts?
(c) If the true % of errors for the copier is 2.5%, calculate the probability of making a type II error for your test in part (a).