Brooklyn Corporation manufactures DVDs. The machine that is used to make these DVDs is known to produce not more than 5% defective DVDs. The quality control inspector selects a sample of 200 DVDs each week and inspects them for being good or defective. Using the sample proportion, the quality control inspector tests the null hypothesis p > .05 against the alternative hypothesis p < .05, where p is the proportion of DVDs that are defective. She always uses a 2.5% significance level. If the null hypothesis is rejected, the production process is stopped to make any necessary adjustments. A recent sample of 200 DVDs contained 17 defective DVDs.
a. Using a 2.5% significance level, would you conclude that the production process should be stopped to make necessary adjustments?
b. Perform the test of part a using a 1% significance level. Is your decision different from the one in part a?
Comment on the results of parts a and b.