Answer:
The calculated value Z = 2.734 > 2.576 at 0.01 level of significance
Null hypothesis is rejected
The claim that 75% of adults say that it is morally wrong to report all income on tax returns.
Step-by-step explanation:
Step(i):-
Given random sample size 'n' = 745
Given In a poll of 745 randomly selected adults, 591 said that it is morally wrong to not report all income on tax returns
sample proportion
[tex]p^{-} = \frac{x}{n} = \frac{591}{745} = 0.7932[/tex]
Given Population proportion P = 0.75
Q = 1-P
Q = 1 - 0.75 = 0.25
Null Hypothesis :H₀: P=0.75
Alternative Hypothesis :H₁:P≠ 0.75
Step(ii):-
Test statistic
[tex]Z = \frac{p^{-}-P }{\sqrt{\frac{P Q}{n} } }[/tex]
[tex]Z = \frac{0.7932-0.75 }{\sqrt{\frac{0.75 X 0.25}{745} } }[/tex]
Z = 2.734
Level of significance ∝ = 0.01
The critical value Z =2.576
The calculated value Z = 2.734 > 2.576 at 0.01 level of significance
Null hypothesis is rejected
The claim that 75% of adults say that it is morally wrong to report all income on tax returns.