A recent survey conducted by Lieberman Research Worldwide and Charles Schwab reported that the “High Cost of Living” was the top concern that most surprised young adults as they began life on their own. Twenty-six percent reported “High Cost of Living” as their top concern. A disbeliever of this information took his own random sample of 500 young adults starting out on their own in an attempt to show that the true percentage for this top concern is actually higher.
a. Find the p-value if 148 of the young adults surveyed put down “High Cost of Living” as their top concern.
b. Explain why it is important for the level of significance to be established before the sample results are known.