When a law firm represents a group of people in a class action lawsuit and wins that lawsuit, the firm receives a percentage of the group's monetary settlement. That settlement amount is based on the total number of people in
the group-the larger the group and the larger the settlement, the more money the firm will receive. A law firm is
trying to decide whether to represent car owners in a class action lawsuit against the manufacturer of a certain
make and model for a particular defect. If 5 percent or less of the cars of this make and model have the defect,
the firm will not recover its expenses. Therefore, the firm will handle the lawsuit only if it is convinced that more
than 5 percent of cars of this make and model have "he defect. The firm plans to take a random sample of 1,000
people who bought this car and ask them if they experienced this defect in their cars.