Price scanners at O-mart are supposed to produce no more than 2% errors. Is this under-stated? We randomly sample n=1000 scans and find 28 of the scans produce an incorrect price. Test the problem above use significance level 0.05
(a) Write down H0 and Ha
(b) What's the unbiased point estimate of the parameter to be tested?
(c) Find the proper test statistic and compute the (observed) value for it based on our sample;
(d) What's the Rejection Region (rule) based on the test statistic and what's your decision?
(e) Find the P-value and make a decision with your P-value;
(f) Confirm that all the conditions are satisfied to use the large sample test procedure above.