Test if new check verification system reduces proportion


A check cashing service has found that approximately 5% of all checks submitted to the service for cashing are bad. After instituting a check verification system to reduce its losses, the service found that only 45 bad checks appeard in a sample of 1124 cashed checks. Using Alpha = .01, test whether the new check verification system reduces the proportion of bad checks being cashed.

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Basic Statistics: Test if new check verification system reduces proportion
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