Download the App!

Get 24/7 study help with the Numerade app for iOS and Android! Enter your email for an invite.

Get the answer to your homework problem.

Try Numerade free for 7 days

Like

Report

Speaking to a group of analysts in January $2006,$ a brokerage firm executive claimed that at least 70$\%$ of investors are currently confident of meeting their investment objectives. A UBS Investor Optimism Survey, conducted over the period January 2 to January $15,$ found that 67$\%$ of investors were confident of meeting their investment objectives (CNBC, January $20,2006 ) .$a. Formulate the hypotheses that can be used to test the validity of the brokerage firm executive's claim.b. Assume the UBS Investor Optimism Survey collected information from 300 investors. What is the $p$ -value for the hypothesis test?c. At $\alpha=.05$ , should the executive's claim be rejected?

b. $H_{0} : p=0.70$ and $H_{a} : p>0.70$b. 0.1292c, Null hypothesis is not rejected

Intro Stats / AP Statistics

Chapter 9

Hypothesis Tests

Confidence Intervals

Hypothesis Testing with One Sample

Hypothesis Testing with Two Samples

Missouri State University

Piedmont College

Boston College

Lectures

0:00

01:58

Speaking to a group of ana…

01:13

An article in Fortune (Sep…

06:07

A shareholders' group…

01:27

Testing Claims Using P-Val…

01:29

01:38

01:32

06:13

The Employment and Trainin…

Question 41. We're told that a brokerage firm executive claims that at least 70% of investors are confident that they will meet their investment objectives. But a company called U. B S has done a survey, and in their surveys, 67% of investors believe that they will meet their investment objectives. The party s is to formulate a hypothesis testing the brokerage firm executives claims. So those claims were that at least 70%. And we could say that the alternative hypothesis that we will test using our survey sample is that P is less than 0.7 part B. We're told that the survey was of size 300 and were asked to calculate the P value for our test. So, for in part from the survey were also told that survey proportion is 0.67 and just a reminder that we're testing against a proportion of 0.7 so we can go ahead and calculate our test statistic and that is equal to you. So the said value comes out to you minus 1.13 So if we go to a standard normal table minus 1.1 three, I would get 0.1292 So that's the area to the left of our Zed score, which is their test statistic. And because this is a lower tailed test that is equal to R P value. So we have t value, say, quitting 0.1292 and then Percy, We're asked that at an Alfa level of 0.5 what do we conclude? And if we compare the P value to Alfa, we can see that the T value is bigger than Alfa and therefore we would fail to reject the no hypothesis and we would So therefore, we would fail to reject the claim by the brokerage firm executive that more than 70% of its investors are confident in meeting their investment objectives.

View More Answers From This Book

Find Another Textbook

Numerade Educator

08:49

Four different paints are advertised as having the same drying time. To chec…

02:50

For a particular insurance policy the number of claims by a policy holder in…

03:50

Grasshopers are distributed at random in a large field according to a Poisso…

04:38

In cost estimation, the total cost of a project is the sum of component task…

02:20

The American Community Survey showed that residents of New York City have th…

02:15

FedEx and United Parcel Service (UPS) are the world's two leading cargo…

08:04

Refer to exercise 29 .a. What hypotheses are implied in this problem?

10:05

A simple random sample with $n=54$ provided a sample mean of 22.5 and a samp…

05:28

In exercise $1,$ the following estimated regression equation based on 10 obs…

02:33

Consumption of alcoholic beverages by young women of drinking age has been i…