Answer:
Does not exceed 2% in both cases.
Explanation:
Given that a manufacturer of interocular lenses will qualify a new grinding machine if there is evidence that the percentage of polished lenses that contain surface defects does not exceed 2%.
Sample proportion =

Create hypothesses as

(Right tailed test at 5% significance level)
P difference = 0.004
Std error = 0.0089
test statistic Z = p diff/std error = 0.4518
p value = 0.326
Since p >alpha, we accept nullhypothesis
b) For confidence interval 97% we have
Margin of error = 2.17* std error = 0.0192
Confidence interval
=

Since 2% = 0.02 lies within this interval we accept null hypothesis.
Does not exceed 2%
Since