Research in the gaming industry showed that 10% of all slot machines in the United States stop working each year. Short’s Game Arcade has 60 slot machines and only 3 failed last year. At the .05 significance level, test whether these data contradict the research report.

a. Why can you employ z as the test statistic?

b. State the null and alternate hypotheses.

c. Evaluate the test statistic and make the decision.

d. What is the p-value and what does that imply?