A mutual fund manager claims that at least 70% of the stocks she selects will increase in price over the next year. We examined a sample of 200 of her selections over the past three years. Our P-value turns out to be 0.03. Test an appropriate hypothesis. Which conclusion is appropriate? Explain.

a) There’s a 3% chance that the fund manager is correct.

b) There’s a 97% chance that the fund manager is correct.

c) There’s a 3% chance that a random sample could produce results at least as extreme as we observed if p = 0.7, so it’s reasonable to conclude that the fund manager is correct.

d) There’s a 3% chance that a random sample could produce results at least as extreme as we observed if p = 0.7, so it’s reasonable to conclude that the fund manager is not correct.

e) There’s a 3% chance that the null hypothesis is correct.