In a study of 1228 randomly selected medical malpractice lawsuits, it was found that 856 of them were dropped or dismissed (based on data from the Physicians Insurers Association of America). Use a 0.01 significance level to test the claim that there is a difference between the rate of medical malpractice lawsuits that go to trial and the rate of such lawsuits that are dropped or dismissed.

Use the sign test for the claim involving nominal data.