In a study of store checkout scanners, a sample of 1234items were checked and 20 of them were overcharges. It had beenclaimed by the manufacturers that only 2% of the sales would beovercharges. Based on these results, at the 1% level ofsignificance, do the scanners appear to overcharge less often thanthe 2%?
(1) List all the information necessary for conductingthe hypothesis test and state which
test you are doing.
(2) State the null and alternative hypotheses andwhether you would use a right-tailed
test, a left-tailed test, or a two-tailedtest.
(3) Sketch the critical reason, indicating on the sketchwhat the critical value(s) are.
(4) Determine the calculated z or t.
(6) Decide if you will Reject or Fail to Reject the NullHypothesis.
(7) Interpret your conclusion in terms of theproblem.
