Many researchers consider that a 75% response rate to a survey is quite good. In spring 1998, Statistics Canada surveyed thousands of representatives of businesses, governments, and institutions regarding their capital spending plans. At the same time, they wished to study the response rates. Of 500 who were contacted for the spending survey, 395 returned a response (based on data in The Globe and Mail, July 23, 1998). At the 0.05 level of significance, test the claim that this survey had a response rate greater than 75%.
Test the given claim, and draw the appropriate graph. Use the traditional method or the P-value method of testing hypotheses (or your instructor may specify which method to use with assigned exercises). Assume that all samples have been randomly selected.