Solution :
It is given that :
(Null hypothesis,
is also correct)
(Alternate hypothesis, also called
)
This is a lower tailed test,
Therefore,
Sample proportion, 

= 0.04
And claimed proportion, P = 0.05
Significance level,
= 0.01
Therefore, calculating the statistics, we get
Standard deviation of 


Test statistic,



Now since this is a lower tailed test, p-value = 
Rejection Criteria : Reject
if p-value < α .
Conclusion : Since the p-value
, we fail to reject the null hypothesis. There is insufficient evidence that p is less than 0.05