n a study of store checkout-scanners, 1234 items were checked for price accuracy; 20 checked items were found to be over charges, and 1214 we're not over charges. Use a 0.05 significance level to test the claim that with scanners, one percent of sales are over charges. a) before scanners were introduced, the overcharge rate was estimated to be about 1%. Based on the results of the study, do scanners appear to help consumers avoid overcharges? (Yes/No), because a (Larger/smaller) proportion of the sampled items are overcharges. It appears that the error rate is (worse/better/ about the same) with scanners than was before.

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2-Proportion Test

In a 2-proportion test, two separate proportions are measured at the same time, and their similarity is evaluated. It is also known as a 2-proportion z-test, and a comparison of two different proportions is done in this method.