The statement is true for all positive integers n by the principle of mathematical induction.
The mantra "It works for n=1, so it must work for n=2.
It works for n=2, so it must work for n=3, and so on ..." is incorrect and is not to be used in HSC examinations according to the exam committee as discussed on page 9 of the following document
http://www.boardofstudies.nsw.edu.au/hsc_exams/hsc2005exams/pdf_doc/maths_ext_2_er_05.pdf
Thus the official BOS position on the issue is as follows:
The setting out of the induction warrants comment. A very large number of candidates who successfully completed the question (and many who attempted it) ended the induction proof with some version of the following:
"The statement is true for
n = 0 and hence is true for n = 1. The statement is true for n = 1and hence is true for n = 2 . The statement is true for n = 2 and hence is true for n = 3 and so on. Hence the statement is true for all integers n ≥ 0 (by induction)."
In a large number of cases the words .by induction. were omitted. Much time is wasted writing such a lengthy final statement and it would be better if candidates ended induction proofs with a simple statement like:
"Hence the statement is true for all n ≥ 0 by induction."
This was discussed at length 2 years ago, but the issue arose again briefly at this year's examiners day because the 2006 MANSW HSC solutions contain the mantra in the Ext. 1 solutions, but not in the Ext. 2 solutions.