Problem 2. Someone makes a claim that the probability of bit error, p, for a certain unit is less than 10-5. Based on sample data with n = 10,000,000, 80 bit errors were found. We wish to test the claim that the probability of bit error is less than 10-5 using a significance level of 0.05. a. What is the null hypothesis? b. What is the alternate hypothesis? c. What is the critical value? d. Test the null hypothesis by computing the test statistic Z. What is your value for Z? e. What is the P-value? f. Based on the critical value or the P-value should we reject or fail to reject the null hypothesis?

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