A manufacturer considers his production process to be out of control when defects exceed 3%. In a random sample of 85 items, the defect rate is 5.9% but the manager claims that this is only a sample fluctuation and production is not really out of control. At the 0.01 level of significance, test the manager's claim.

Identify the null hypothesis and alternative hypothesis.

Calculate the test statistic and the P-value.

At the 0.01 level of significance, test the manager’s claim.