A Manufacturer Claims That Less Than 1% of All His

Multiple Choice

A manufacturer claims that less than 1% of all his products do not meet the minimum government standards. A survey of 500 products revealed ten did not meet the standard. If the z-statistic is -1.96 and the level of significance is 0.01, what is your decision?

A) You reject the null hypothesis.
B) You have insufficient evidence to reject the null hypothesis.
C) You accept the alternate hypothesis and agree that less than 1% meet government standards.
D) You should have used the t-test.