Statistics have shown that a child 0 to 4 years of age has a 0.0002 probability of getting cancer in any given year.
Assume that during each of the last seven years there have been 100 children ages 0 to 4 years whose parents work in a university's business school. Four of these children have gotten cancer.
Use this evidence to test whether the incidence of childhood cancer among children ages 0 to 4 years whose parents work at this business school exceeds the national average. State your hypotheses and determine the appropriate p-value.