Statement of a problem № m826


Research in the gaming industry showed that 10% of all slot machines in the United States stop working each year. Short’s Game Arcade has 60 slot machines and only 3 failed last year. At the .05 significance level, test whether these data contradict the research report. a. Why can you employ z as the test statistic? b. State the null and alternate hypotheses. c. Evaluate the test statistic and make the decision. d. What is the p-value and what does that imply?

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