Cancer in young children is usually thought to be rare. It is believed that there is a 4% probability that a 0 to 4 year old will contract some form of the disease; however you fear that your town may be a "cancer cluster" ( a location with higher than normal incidences of cancer). In order to test this hypothesis you gathered data on 100 children between the ages of 0 and 4 over the past 7 years. Four of these children have been diagnosed with cancer. Is your neighborhood a "cancer cluster"?
a) State the hypotheses
b) Calculate the z-score
c) Calculate the p-value
d) Test the hypotheses and state your conclusion
e) Interpret the results