A machine has to be repaired if there are more than 10% defectives among all items it produces in a day. A random sample of 100 items for the day’s production contains 15 defectives. The manager needs to decide whether the machine must be repaired or not. Please design an appropriate hypothesis test to help the manager make this decision. The significant level of the test is 0.05. If you only have a random sample of 10 items and find 2 defectives among these items, what is your suggestion? The significant level is 0.05 too.

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