An issue that faces individuals investing for retirement is allocating assets among different investment choices.

Suppose a study conducted 10 years ago showed that 65% of investors preferred stocks to real estate as an investment. In a recent random sample of 900 investors, 360 preferred real estate to stocks. Are these new data sufficient to allow you to conclude that the proportion of investors preferring stocks to real estate has declined from 10 years ago? Conduct your analysis at the a = 0.02 level of significance.

9-32. According to an article by the National Public Radio

(www.npr.org), in the United States, there is a higher percentage of boys being born than girls, with 51% of babies being male. You are curious to find out why that ratio is not 50:50 and you want to validate the result provided by the article. Based on a random sample of 500 newborn children, you find that 258 of the 500 are boys.

a. State the appropriate null and alternative hypothesis for your analysis of the given situation.

b. Conduct an appropriate hypothesis testing for your analysis at a 5% significance level. Discuss.