?7 CRE Honesty? In a ?USA Today? survey of 456 subjects, 269 answered “yes” to this question: “Is honesty always the best policy?” a.? Use a 0.05 significance level to test the claim that the majority of us say that honesty is always the best policy. b.? The survey results were obtained from Internet users who visited the ?USA Today? Web site and chose to respond to the question that was posted. What is the term used to describe this type of sample? What does this sampling method suggest about the results given in part (a)?

Solution 7 CRE Step 1 : A survey conducted for 456 subjects in that 269 said “yes” to “honesty is a best policy”. To test the claim that the majority of the subjects say honesty is best policy. Majority means that greater than 0.5 Hypothesis H 0 p =0.5 H 1 p >0.5 Step 2 : number of subejects who said yes p = The total number of subjec456 = 0.5899 Test Statistic Z = pp ~N(0,1) p(1p0 n Let n = 456 Y = 269 np = 228 Therefore, Z = 0.0.02341= 3.840 The test statistic Z= 3.840 To find P-Value = P[z> 3.62] (Since it is a right tailed test ) = 1 - P[z< 3.62]) = 1 - 0.999 (From area under normal curve table) = 0.0001 The P-Value is 0.0001