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From a random sample of 500 registered voters in Los Angeles, 400 indicated that they would vote in favour of a proposed policy in an upcoming election.

a) Test at the 10% significance level a politician’s statement that “those who are in favour of this policy represent more than 85% of the population”.

b) Suppose that the true proportion of those who favour this policy is 0.77. Calculate the power of the test conducted in (a) at the 10% significance level.

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