A Massive Server Farm Uses Temperature-Sensitive Electronic Equipment

question 62

Multiple Choice

A massive server farm uses temperature-sensitive electronic equipment.The cooling system malfunctions over the weekend, and some of the equipment is damaged.The owners file a claim with their insurance company claiming that 7% of the units were affected throughout the facility.Investigators randomly sample 80 of the units from random locations throughout the server floor.They find 5 defective units.Does it appear that the company's claim is accurate (neither too high nor too low) ? State the p-value and decision.(Use α = 0.05.)

• A) p-value = 0.0700; reject H₀
• B) p-value = 0.0700; fail to reject H₀
• C) p-value = 0.7948; fail to reject H₀
• D) p-value = 0.3974; fail to reject H₀

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