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A company manufactures ceramic ball bearings, but customers complain that some of them are cracked. Some cracking is inevitable and the company accepts 0.2% cracked product. A random sample of ball bearings is collected from the manufacturing plant and tested to determine whether more than 0.2% are cracked. The P-value comes to 0.165, and management concludes that there is no cracking problem and continues to operate the plant as in the past.

a) Comment on how the P-value has been interpreted by the company.

b) Give possible reasons for the P-value if in fact more than 0.2% are cracked.

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