In a recent poll of 740 randomly selected adults, 590 said that it is morally wr

Question

In a recent poll of 740 randomly selected adults, 590 said that it is morally wrong to not report all income on tax returns. Use a 0.01 significance level to test the claim that 75% of adults say that it is morally wrong to not report all income on tax returns. Identify the null hypothesis, alternative hypothesis, test statistic, P-value, conclusion about the null hypothesis, and final conclusion that addresses the original claim. Use the P-value method. Use the normal distribution as an approximation of the binomial distribution. The test statistic is

Explanation / Answer

Ho: p = 0.75
H1: p # 0.75

p-hat = 590/740

          = 0.7972
test stat: z = (0.7972-0.75)/sqrt[0.75*0.25/740]

                  = 2.96522
p-value = 2*P(z > 2.96522 = 0.0030

pvalue(0.0030)< 0.01

reject null hypothesis.

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