Cash flow and profits are both crucial aspects of a business. Profit is the surplus revenue after deducting business expenses. Cash flow is the total amount of cash moving in and out of your business. For a business to be successful in the long term, it needs to generate profits while also operating with positive cash flow. During the Covid-19 pandemic, however, of a random sample of 199 auditors, 104 indicated some measure of agreement with this statement: cash flow is more important to keep the business operating on a day-to-day basis.

a) Investigate the claim that one-half of the members of this population would agree with this statement. Also, find and interpret the p-value of this test.

b) Find the probability of accepting the claim with a 10%-level test if, in fact, 60% of all auditors agree that cash flow is an important indicator to keep the business operating on a day-to-day basis.