Officials in Chattanooga, Tennessee are aware that in the past, 12% of their residents own a business. One of the 2016 community survey questions was “do you own a business in Chattanooga?” Out of 1910 respondents, 217 answered yes.
a) Check the conditions of the normal approximation if π₀ = 0.12.
b) Test at 5% significance if in 2016 the proportion of residents that owned a business was 12%.