A random sample of 100 computer chips made by a manufacturer were inspected and 8 were found to be defective.

A random sample of 100 computer chips made by a manufacturer were inspected and 8 were found to be defective.

(a) Construct a 90% confidence interval for the true defective rate of chips made by this manufacturer.

(b) Use the five-step hypothesis testing procedure to assess whether the true defective rate is higher than the chip maker’s desired rate of 5%. 

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