Answer:
a. The value of Sample proportion(p) = 52 ÷ 420 = 0.124 ≈ 0.12
The formula for computing the test statistic is given by,
z = (p - P) ÷ σ
where, p is the sample proportion = 0.12
P is the hypothesized value of Population Proportion = 12.5% = 0.125
and σ is standard deviation
σ = [tex]\sqrt{\frac{P(1-P)}{n}}[/tex]
⇒ σ = 0.01
Putting all value in z. We get,
z = (0.12 - 0.125) ÷ 0.01
⇒ z = -0.5
Thus, the p-value at 5% level of significance foe one-tail test = 0.3085
Thus, we reject the null-hypothesis. Since, z-value > p-value.