Question: According to the Federal Poverty Measure 12% of the U.S. population lives in poverty. The governor of a certain state believes that the proportion there is lower. In a sample of size 1,550, 163 were impoverished according to the federal measure.
a. Test whether the true proportion of the state's population that is impoverished is less than 12%, at the 5% level of significance.
b. Compute the observed significance of the test.