One particular professional association of investors conducts a weekly survey of its members to measure the percent who are bullish, bearish, and neutral on the stock market for the next six months. The survey results showed 37.9% bullish, 22.6% neutral, and 39.5% bearish. Assume these results are based on a sample of 300 members.   (a) Over the long term, the proportion of bullish members is 0.39. Conduct a hypothesis test at the 5% level of significance to see if the current sample results show that bullish sentiment differs from its long term average of 0.39. What are your findings?   Formulate the hypotheses that can be used to determine whether the bullish sentiment differs from its long term average of 0.39. A.    H0: p ≥ 0.39         Ha: p < 0.39   B.     H0: p ≤ 0.39          Ha: p > 0.39      C.      H0: p = 0.39          Ha: p ≠ 0.39   D.      H0: p < 0.39           Ha: p ≥ 0.39   E.       H0: p > 0.39           Ha: p ≤ 0.39   Find the value of the test statistic. (Round your answer to two decimal places.) ______________________.   Find the p-value. (Round your answer to four decimal places.) p-value =___________________.   What is your conclusion? (multiple choice)   A.    Do not reject H0. There is sufficient evidence to conclude that the bullish sentiment differs from its long term average of 0.39. B.     Do not reject H0. There is insufficient evidence to conclude that the bullish sentiment differs from its long term average of 0.39.     C.      Reject H0. There is insufficient evidence to conclude that the bullish sentiment differs from its long term average of 0.39. D.      Reject H0. There is sufficient evidence to conclude that the bullish sentiment differs from its long term average of 0.39.   (b) Over the long term, the proportion of bearish members is 0.30. Conduct a hypothesis test at the 1% level of significance to see if the current sample results show that bearish sentiment is above its long term average of 0.30. What are your findings?   Formulate the hypotheses that can be used to determine whether the current bearish sentiment is above its long term average of 0.30.(multiple choice) A.     H0: p > 0.30         Ha: p ≤ 0.30   B.      H0: p < 0.30          Ha: p ≥ 0.30      C.      H0: p ≤ 0.30           Ha: p > 0.30   D.        H0: p ≥ 0.30            Ha: p < 0.30   E.        H0: p = 0.30            Ha: p ≠ 0.30 Find the value of the test statistic. (Round your answer to two decimal places.) _________________.   Find the p-value. (Round your answer to four decimal places.) p-value =______________________.   What is your conclusion? A.      Do not reject H0. There is insufficient evidence to conclude that the bearish sentiment is above its long term average of 0.30. B.        Reject H0. There is sufficient evidence to conclude that the bearish sentiment is above its long term average of 0.30.     C.        Do not reject H0. There is sufficient evidence to conclude that the bearish sentiment is above its long term average of 0.30. D.        Reject H0. There is insufficient evidence to conclude that the bearish sentiment is above its long term average of 0.30.

Question
One particular professional association of investors conducts a weekly survey of its members to measure the percent who are bullish, bearish, and neutral on the stock market for the next six months. The survey results showed 37.9% bullish, 22.6% neutral, and 39.5% bearish. Assume these results are based on a sample of 300 members.
 
(a)
Over the long term, the proportion of bullish members is 0.39. Conduct a hypothesis test at the 5% level of significance to see if the current sample results show that bullish sentiment differs from its long term average of 0.39. What are your findings?
 
Formulate the hypotheses that can be used to determine whether the bullish sentiment differs from its long term average of 0.39.
A.    H0: p ≥ 0.39
        Ha: p < 0.39
 
B.     H0: p ≤ 0.39
         Ha: p > 0.39
    
C.      H0: p = 0.39
         Ha: p ≠ 0.39
 
D.      H0: p < 0.39
          Ha: p ≥ 0.39
 
E.       H0: p > 0.39
          Ha: p ≤ 0.39
 
Find the value of the test statistic. (Round your answer to two decimal places.)
______________________.
 
Find the p-value. (Round your answer to four decimal places.)
p-value =___________________.
 
What is your conclusion? (multiple choice)
 
A.    Do not reject H0. There is sufficient evidence to conclude that the bullish sentiment differs from its long term average of 0.39.
B.     Do not reject H0. There is insufficient evidence to conclude that the bullish sentiment differs from its long term average of 0.39.     C.      Reject H0. There is insufficient evidence to conclude that the bullish sentiment differs from its long term average of 0.39.
D.      Reject H0. There is sufficient evidence to conclude that the bullish sentiment differs from its long term average of 0.39.
 
(b)
Over the long term, the proportion of bearish members is 0.30. Conduct a hypothesis test at the 1% level of significance to see if the current sample results show that bearish sentiment is above its long term average of 0.30. What are your findings?
 
Formulate the hypotheses that can be used to determine whether the current bearish sentiment is above its long term average of 0.30.(multiple choice)
A.     H0: p > 0.30
        Ha: p ≤ 0.30
 
B.      H0: p < 0.30
         Ha: p ≥ 0.30
    
C.      H0: p ≤ 0.30
          Ha: p > 0.30
 
D.        H0: p ≥ 0.30
           Ha: p < 0.30
 
E.        H0: p = 0.30
           Ha: p ≠ 0.30
Find the value of the test statistic. (Round your answer to two decimal places.)
_________________.
 
Find the p-value. (Round your answer to four decimal places.)
p-value =______________________.
 
What is your conclusion?
A.      Do not reject H0. There is insufficient evidence to conclude that the bearish sentiment is above its long term average of 0.30.
B.        Reject H0. There is sufficient evidence to conclude that the bearish sentiment is above its long term average of 0.30.    
C.        Do not reject H0. There is sufficient evidence to conclude that the bearish sentiment is above its long term average of 0.30.
D.        Reject H0. There is insufficient evidence to conclude that the bearish sentiment is above its long term average of 0.30.
 
(c)
Would you feel comfortable extending these results to all investors? Why or why not?(multiple chocie)
 
A.      Yes. One should feel comfortable extending these results to all investors. The association contains investors. Therefore, it is fine to generalize these results to all investors.
B.       Yes. One should feel comfortable extending these results to all investors. Members of this professional association may be different from other types of investors. Therefore, it is fine to generalize these results to all investors.    
C.         No. One should not feel comfortable extending these results to all investors. Members of this professional association may be different from other types of investors. Therefore, it would be dangerous to generalize these results to all investors.
D.        No. One should not feel comfortable extending these results to all investors. All investors must be a member of this professional association. Therefore, it is dangerous to generalize these results to all investors.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Math
Statistics

Hypothesis Testing

Related Statistics Q&A

Find answers to questions asked by students like you.

Q: Compare and contrast the conditional probability, multiplication rule, and addition rule.

A: Conditional probability:   Conditional probability is defined as “the probability of happening of a...

Q: A Pew Research study of 4726 randomly selected U.S. adults regarding scientific human enhancements, ...

A: Let p denote the proportion of adults who worried about brain chip implants being used for improving...

Q: Bowl Game Predicted Pt Margin Actual Pt Margin Outback 5 3 Gator 1 12 Capital One 3 2 Rose -...

A: a. In the scatter plot, Predicted Pt Margin is plotted in horizontal axis and Actual Pt Margin is pl...

Q: Currently Samsung ships 23.4 percent of the organic light-emitting diode (OLED) displays in the worl...

A: From the provided information, Samsung ships 23.4 percent of the organic light-emitting diode displa...

Q: Personal wealth tends to increase with age as older individuals have had more opportunities to earn ...

A: From the given information,   R Square 0.91146               Adjusted R Square 0.896703 ...

Q: The weights of a certain brand of candies are normally distributed with a mean weight of 0.8563 g an...

A: Click to see the answer

Q: The linear correlation coefficient of a set of data points is 0.846. a. Is the slope of the regressi...

A: It is given that the linear correlation coefficient is 0.846.

Q: The following exercises are based on the following sample data consisting of numbers of enrolled stu...

A: Property: The value of r does not change when all the values for either of the variable is converted...

Q: In survey of 7000 women, 4431 says they change their nail polish once a week. Construct a 95% confid...

A: Click to see the answer

Q: If the z-value for a given x of a random variable Z is z =1.06, and the distribution of X is normal ...

A: Click to see the answer

Q: Answer true or false to each of the following statements and explain your answers. a. Multicollinear...

A: a) Multicollinearity: Multicollinearity is defined as the presence of correlation among the predict...

Q: Normal Distribution What’s wrong with the following statement? “Because the digits 0, 1, 2,…, 9 are ...

A: It is given that, the digits 0, 1, 2 ... 9 are the normal results from lottery drawings.

Q: Correlation measures linear association. If the relationship between an explanatory variable ?X and ...

A: From the provided information, The two variables are positively related. The correlation coefficient...

Q: Statistics Question

A: Obtain the z score such that area under the standard normal curve lies to the left of z is 0.8485 Th...

Q: In each of Exercises, we have specified a margin of error, a confidence level, and a likely range fo...

A: It is given that margin of error (E) is 0.02 and the confidence level is 95%.

Q: Find the Zstat, and P-Value?

A: Given information- Significance level, α = 0.01 Population proportion of female, p = 0.43 Sample pro...

Q: Find mean, median and mode of the following grouped data:                                           ...

A: Click to see the answer

Q: Standard Normal Distribution. One of the most important distributions in statistics is the standard ...

A: It is given that the distribution is Standard normal.

Q: Thanks in advance!

A: Introduction: The given regression equation is: Y = 0.00027 + 0.7916 X.

Q: assume a cardiovascular surgeon has implanted 13 pacemakers in his patients from a new batch of pace...

A: Click to see the answer

Q: In each of Exercises, we have specified a margin of error and a confidence level. For each exercise,...

A: Click to see the answer

Q: Regarding analysis of residuals, decide in each case which assumption for regression inferences may ...

A: The main assumptions for inferences of linear regression model are; Linearity: There must be linear...

Q: The director of research and development is testing a new medicine. She wants to know if there is ev...

A: Hypothesis: Hypothesis is an assumption about the parameter of the population which will be made on ...

Q: The following data are from an experiment designed to investigate the perception of corporate ethica...

A: The data represents the perception of corporate ethical values among individuals who are in marketin...

Q: Identify the sampling technique used for the following study. A pollster interviews the first f...

A: Since, the convenience sample is a type of non-probability sampling technique, in which the samples ...

Q: The U.S. Air Force requires that pilots have heights between 64 inc. and 77 in.The heights of women ...

A: From the provided information, Mean (µ) = 63.7 in. Standard deviation (σ) = 2.9 in. Let X be a rando...

Q: A recent study of cardiovascular risk factors reported that 30% of adults met criteria for hypertens...

A: Click to see the answer

Q: Can you please help me with this question? I will rate! Thank you!

A: Click to see the answer

Q: Can you please help me with this question? I will rate! Thank you!

A: Click to see the answer

Q: Find the area of the shaded region. The graph to the right depicts IQ scores of adults, and those sc...

A: Click to see the answer

Q: Here are summary statistics for randomly selected weights of newborn girls: n 188, x 30.1 hg, s = 7....

A: Click to see the answer

Q: A random variable X has probability density function (pdf) fx(x), where   fx(X)= c(1–x4) -1≤x≤1 i) F...

A: The provided pdf is,

Q: A data set includes 106 body temperatures of healthy adult humans having a mean of 98.9 F and a stan...

A: It is given that, Sample mean = 98.9. Sample standard deviation, s is 0.62. The sample size, n is 10...

Q: U.S. House of Representatives. There are 435 representatives in the 113th session of the U.S. House ...

A: a. The names of the 435 representatives of the U.S. House of Representatives are arranged alphabetic...

Q: Marital Status and Drinking. Research by W. Clark and L. Midanik (Alcohol Consumption and Related Pr...

A: Click to see the answer

Q: 2.A firm applies a skill test to applicants to fill the vacant Quality Engineer position. The compan...

A: Click to see the answer

Q: calculate Reimbursable Expenses per Year of a tenant just signed a 10-year lease on the remaining sp...

A: Givenexpense stop = 6.75 per square footLease is for 10 years. The expenses per square feet for each...

Q: 2. Exploring the role of sample size:a. Construct 1,000 confidence intervals with n = 10, p = 0.3. W...

A: The provided information is:

Q: We wish to estimate an average number of education years for a college student atWVC. We take a samp...

A: The summary of the statistics are, The degree of freedom is, Critical value: By using the t-tables...

Q: A firm applies a skill test to applicants to fill the vacant Quality Engineer position. The company'...

A: The provided data is, The level of significance = 1 – confidence level = 1 – 0.90 = 0.10 or 10%.

Q: The number of potholes in any given 1 mile stretch of freeway pavement in Pennsylvania has a bell-sh...

A: Introduction: The empirical rule for a normally distributed random variable is as follows: About 68...

Q: Suppose that you want to perform a hypothesis test for a population mean, μ. a. Express the null hyp...

A: Click to see the answer

Q: In a population distribution, a score of X = 28 cor- responds to z = −1.00 and a score of X = 34 cor...

A: Click to see the answer