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Two competitive investment fund managers devised a plan to determine which one is better at picking stocks. They hired a statistician to randomly select some stocks from each manager's portfolio and to compare the proportions of these stocks that are valued higher than they were 6 months earlier. Her analysis revealed that 66% of the stocks picked by manager #1 had increased in value while 60% of the stocks picked by manager #2 had increased in value. Her p-value for a two tailed test was 0.3500. At a significance level of 0.05, what should she conclude? o Fund manager #1 is better at picking stocks than fund manager #2. o Fund manager #2 is better at picking stocks than fund manager #1. O There is insufficient evidence to conclude that the two fund managers differ in their ability to pick stocks. o There is sufficient evidence to conclude that the two fund managers differ in their ability to pick stocks.

Two competitive investment fund managers devised a plan to determine which one is better at picking stocks. They hired a statistician to randomly select some stocks from each manager's portfolio and to compare the proportions of these stocks that are valued higher than they were 6 months earlier. Her analysis revealed that 66% of the stocks picked by manager #1 had increased in value while 60% of the stocks picked by manager #2 had increased in value. Her p-value for a two tailed test was 0.3500. At a significance level of 0.05, what should she conclude? o Fund manager #1 is better at picking stocks than fund manager #2. o Fund manager #2 is better at picking stocks than fund manager #1. O There is insufficient evidence to conclude that the two fund managers differ in their ability to pick stocks. o There is sufficient evidence to conclude that the two fund managers differ in their ability to pick stocks.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 10CYU
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Two competitive investment fund managers devised a plan to determine which one is better at picking stocks. They hired a statistician to randomly select some stocks from each manager's portfolio and to compare the proportions of these stocks that are valued higher than they were 6 months earlier. Her analysis revealed that 66% of the stocks picked by manager #1 had increased in value while 60% of the stocks picked by manager #2 had increased in value. Her p-value for a two tailed test was 0.3500. At a significance level of 0.05, what should she conclude? o Fund manager #1 is better at picking stocks than fund manager #2. o Fund manager #2 is better at picking stocks than fund manager #1. o There is insufficient evidence to conclude that the two fund managers differ in their ability to pick stocks. o There is sufficient evidence to conclude that the two fund managers differ in their ability to pick stocks.
Transcribed Image Text:Two competitive investment fund managers devised a plan to determine which one is better at picking stocks. They hired a statistician to randomly select some stocks from each manager's portfolio and to compare the proportions of these stocks that are valued higher than they were 6 months earlier. Her analysis revealed that 66% of the stocks picked by manager #1 had increased in value while 60% of the stocks picked by manager #2 had increased in value. Her p-value for a two tailed test was 0.3500. At a significance level of 0.05, what should she conclude? o Fund manager #1 is better at picking stocks than fund manager #2. o Fund manager #2 is better at picking stocks than fund manager #1. o There is insufficient evidence to conclude that the two fund managers differ in their ability to pick stocks. o There is sufficient evidence to conclude that the two fund managers differ in their ability to pick stocks.
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