The manager of the quality assurance department of a light bulb company claims that 95 percent of the bulbs manufactured by the company are defect-free. The CEO of the company, a quality conscious person, checks a random sample of 225 bulbs and finds 87 percent of the bulbs in the sample to be defect-free. The CEO now wants to test the hypothesis that 95 percent of bulbs manufactured by the company are defect-free, as claimed by the quality assurance manager. Test the hypothesis with 0.01 and 0.05 levels of significance. The tables for critical values corresponding to the two levels of significance can be accessed from the prescribed textbook, online etc.
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