f 500 people, 42% of them said they are confident of meetin est the claim that the proportion of people who are confider evel. he null and alternative hypothesis would be: Ho:p=0.4 Ho:u < 0.4 Ho:p > 0.4 Ho:p < 0.4 H H1:p# 0.4 H1:4 > 0.4 H1:p < 0.4 H1:p > 0.4 H

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A well-known brokerage firm executive claimed that 40% of investors are currently confident of meeting their
investment goals. An XYZ Investor Optimism Survey, conducted over a two week period, found that in a sample
of 500 people, 42% of them said they are confident of meeting their goals.
Test the claim that the proportion of people who are confident is larger than 40% at the 0.10 significance
level.
The null and alternative hypothesis would be:
Но: р
0.4 Но: и < 0.4 Но:р > 0.4 Но:р< 0.4 Но: и
H1:p + 0.4 H1:µ > 0.4 H1:p < 0.4 H1:p > 0.4 H1:µ # 0.4 H1:µ < 0.4
0.4 Но: и > 0.4
The test is:
left-tailed right-tailed two-tailed
The test statistic is:
(to 3 decimals)
The p-value is:
(to 4 decimals)
Based on this we:
Reject the null hypothesis
Fail to reject the null hypothesis
Transcribed Image Text:A well-known brokerage firm executive claimed that 40% of investors are currently confident of meeting their investment goals. An XYZ Investor Optimism Survey, conducted over a two week period, found that in a sample of 500 people, 42% of them said they are confident of meeting their goals. Test the claim that the proportion of people who are confident is larger than 40% at the 0.10 significance level. The null and alternative hypothesis would be: Но: р 0.4 Но: и < 0.4 Но:р > 0.4 Но:р< 0.4 Но: и H1:p + 0.4 H1:µ > 0.4 H1:p < 0.4 H1:p > 0.4 H1:µ # 0.4 H1:µ < 0.4 0.4 Но: и > 0.4 The test is: left-tailed right-tailed two-tailed The test statistic is: (to 3 decimals) The p-value is: (to 4 decimals) Based on this we: Reject the null hypothesis Fail to reject the null hypothesis
Expert Solution
Step 1

The objective is to test the claim that the proportion of people who are confident in meeting their goals is larger than 40%

That is, p > 0.40( claim)

The null hypothesis is,

Ho: p ≤0.4

The alternative hypothesis is,

H1:p> 0.4(claim)

The correct option is, fourth option.

From the alternative hypothesis , it is clear that the test is right-tailed test.

 

 

Step 2

Given that,

Sample size, n= 500

Sample proportion, p^ = 42%=42/100=0.42

The test statistic is,

 

Statistics homework question answer, step 2, image 1

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