In a random sample of 361 owners of small businesses that had gone into bankruptcy, 105 reported conducting no marketing studies prior to opening the business. Test the hypothesis that at most 25% of all members of this population conducted no marketing studies before opening their businesses. Use α = 0.05.

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A: Sample size n =264 Favorable cases x =67 Sample proportion p^=x/n  =67/264 =0.2538

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A: n=12405, X=2543

2-Proportion Test

In a 2-proportion test, two separate proportions are measured at the same time, and their similarity is evaluated. It is also known as a 2-proportion z-test, and a comparison of two different proportions is done in this method.