A car manufacturer claims that less than 10% of its cars should need repairs in the first three years of their life, the warranty period. A random sample of 50 three-year-old cars found that 8 had required attention. Does this contradict the maker’s claim? Test the car manufacturer’s claim. a) State the hypothesis to test. [1] b) Find the critical value and the rejection region to test the hypothesis at the 10% significance level. [2] c) Calculate the value of the test statistic to test the hypothesis. [2]

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A car manufacturer claims that less than 10% of its cars should need repairs in the first three years of their life, the
warranty period. A random sample of 50 three-year-old cars found that 8 had required attention. Does this contradict
the maker’s claim? Test the car manufacturer’s claim.
a) State the hypothesis to test. [1]
b) Find the critical value and the rejection region to test the hypothesis at the 10% significance level. [2]
c) Calculate the value of the test statistic to test the hypothesis. [2]
d) State the correct conclusion. 

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