Research in the gaming industry showed that 8% of all slot machinesin the United States stop working each year. Short’s Game Arcadehas 70 slot machines and only 5 failed last year. Use the five-stephypothesis-testing procedure at the 0.05 significance level to testwhether this data contradicts the research report.
(a) State the null hypothesis and the alternate hypothesis. (Roundyour answers to 2 decimal places.)
H0: π =
H1: Ï€ â‰
(b) State the decision rule for 0.05 significance level. (Negativeamounts should be indicated by a minus sign. Round your answers to2 decimal places.)
H0 is rejected if z is not between _______ and _______
(c) Compute the value of the test statistic. (Negative amountshould be indicated by a minus sign. Round your answer to 2 decimalplaces.)
(d) Determine the p-value. (Round your answer to 4 decimalplaces.)
