9. New Tax Laws The new tax structure is supposed to help small businesses survive. It is known that presently 20% of all small businesses fail in their first year.15 In a random sample of n5200 new small businesses followed for one year after opening, 30 were recorded as failed.

a. If we wish to test the claim that the new tax laws help small businesses survive how would we express 0 H and a H ?

b. Find the value of the test statistic based on ˆp, the sample proportion of failed small businesses.

c. What is the rejection region based on a significance level of a 5.05? Can you conclude that the new tax structure helps small businesses survive?

d. Find the p-value for the test. Does your conclusion in part c change?