8.4.4. Suppose that a manufacturing process makes about 3% defective items, Which is considered satisfactory for this particular product. The managers would like to decrease this to about 1% and clearly want to guard against a substantial increase, say to 5%. To monitor the process, periodically n : 100 items are taken and the number X of defectives counted. Assume that X is b(n = 100,33 = 3). Based on a sequence X1, X2, . . . ,Xm, . . ., determine a sequential probability ratio test that tests H0 : t9 = 0.01 against H1 : 8 : 0.05. (Note that 3 = 0.03, the present level, is in between these two values.) Write this test in the form be > 2m nd) > m 11:1 and determine d? hog, and in if 04a : g : 0.02