A VP of manufacturing claims that more than 3% of items produced using a certain assembly line are is defective. A random sample of 100 items from the assembly line had 4 defectives. At the 5% level of significance, which of the following would be part of the standardized decision rule?

Question

A VP of manufacturing claims that more than 3% of items produced using a certain assembly line are is defective.  A random sample of 100 items from the assembly line had 4 defectives. At the 5% level of significance, which of the following would be part of the standardized decision rule?
	
a) Conclude Ho if TS is greater than or equal to 1.645
	
b) Conclude Ho if TS is less than or equal to 1.645
	
c) Conclude Ho if TS is greater than or equal to 1.960
	
d) Conclude Ho if TS is less than or equal to 1.960