A representative of a potential supplier claims that at least 90% of the equipment manufactured and sold by the company has no defects. You have obtained a sample of equipment usage records from a firm that uses these machines. Of 121 machines in the records, 105 machines have no recorded defects. What is the probability of this event if the supplier’s claim is correct (i.e. The p -value). On the basis of this data, do you believe the representative’s claim?

My thoughts:

The significance level of the test: α = 0.1 (10%)

The percentage of 121 machines that have no recorded defects is 86.7%.

I am not sure how to arrive at the p-value from this data.

My thoughts:

The significance level of the test: α = 0.1 (10%)

The percentage of 121 machines that have no recorded defects is 86.7%.

I am not sure how to arrive at the p-value from this data.