7. WidgCo is a company that produces and sells widgets. Until recently, 4% of all widgets produced by WidgCo have been defective. The company recently concluded a project intended to improve its quality control procedures, and believes that the proportion of defective widgets produced has decreased. To confirm this, WidgCo produces 2000 widgets, of which 66 were defective.
a. Clearly state the hypotheses.
b. Calculate the critical region of the test. Would we reject $H_0$ at the $\alpha = 0.05$ level of significance?