Question: Using significance level 0.05 evaluate claim that percent of small businesses closed this year (population proportion) is greater than 26%. Sample of 500 small businesses were taken all over the country and 145 of them were closed this year.

H₀ – population proportion p ≤ 0.26
H₁ – population proportion p > 0.26

(a) Calculate test statistics

(b) Find p-value (use Table A-2) and make decision: reject or not reject H₀.