Step 1 :Step 1: Set the null and alternative hypotheses: \(H_0: p = 0.9\) and \(H_1: p > 0.9\)(right-tailed test).
Step 2 :Step 2: Calculate the test statistic: \(z = \frac{\hat{p} - p_0}{\sqrt{\frac{p_0(1-p_0)}{n}}} = \frac{0.92 - 0.9}{\sqrt{\frac{0.9(1-0.9)}{700}}}\).
Step 3 :Step 3: Find the p-value and compare it to the significance level \(\alpha = 0.01\). If p-value \(< \alpha\), reject \(H_0\); otherwise, do not reject \(H_0\).