A contract with a parts supplier calls for no more than 0.04 defects in the large shipment of parts. To test whether he shipment meets the contract, the receiving company has selected a random sample of n = 100 parts and found 5 defects. If the hypothesis test is to be conducted using a significance level equal to 0.05, what is the test statistic and what conclusion should the company reach based on the sample data?

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