Hypothesis Testing a Proportion
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Margo says she can change the defect rate of miniature cars in Santa’s Toy Shop by adjusting some machine settings. Her boss will offer her a promotion if this is true. Currently, 10% of the cars are defective. A random sample of 400 miniature toys was taken from Margo’s unit. They found that 28 were defective. At the 5% significance level, will Margo get a promotion?