Problem: Stockton International which has several international suppliers. Historically, 6% of the suppliers have account receivables that are past due. Due to the changing economic situation, Ben in the accounting department believes that this percentage is increasing. If it is increasing, he wants to take corrective action. This month, Stockton issued invoices to 478 suppliers. Of these, 42 are past due. Are the past due receivables increasing and is corrective action needed? Test at α =0.01. Report the p-value.
(i) Write down the four-steps.
(ii) Report the p-value.