1. A well-known brokerage firm executive claimed that 60% of investors are currently confident of meeting their investment goals. An XYZ Investor Optimism Survey, conducted over a two week period, found that in a sample of 500 people, 285 of them said they are confident of meeting their goals. Test the claim that the proportion of people who are confident is smaller than 60% at the 0.05 significance level. The null and alternative hypothesis would be:

H0:=0.6H0:=0.6 HA:>0.6HA:>0.6

H0:p=0.6H0:p=0.6 HA:p>0.6HA:p>0.6

H0:p=0.6H0:p=0.6 HA:p<0.6HA:p<0.6

H0:=0.6H0:=0.6 HA:0.6HA:0.6

H0:=0.6H0:=0.6 HA:<0.6HA:<0.6

H0:p=0.6H0:p=0.6 HA:p0.6HA:p0.6

The test statistic is ___________ (to 2 decimals)

The p-value is ___________ (to 4 decimals)

Based on this we:

• Fail to reject the null hypothesis
• Reject the null hypothesis

2. Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 63 stocks traded on the NYSE that day showed that 23 went up.

You are conducting a study to see if the proportion of women over 40 who regularly have mammograms is significantly more than 0.39. You use a significance level of=0.10. H0:p=0.39H0:p=0.39 HA:p>0.39HA:p>0.39 You obtain a sample of sizen=482in which there are 222 successes. What is the test statistic for this sample? (Report answer accurate to three decimal places.) test statistic =____________ You are conducting a study to see if the proportion of stocks that went up is is significantly more than 0.3. You use a significance level of0=0.10.

What is the p-value for this sample? (Report answer accurate to 4 decimal places.) p-value =__________

As such, the final conclusion is that...

• There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3.
• There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3.
• The sample data support the claim that the proportion of stocks that went up is more than 0.3.
• There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is more than 0.3.

3. You are conducting a study to see if the proportion of women over 40 who regularly have mammograms is significantly more than 0.39. You use a significance level of=0.10. H0:p=0.39H0:p=0.39 HA:p>0.39HA:p>0.39 You obtain a sample of sizen=482in which there are 222 successes. What is the test statistic for this sample? (Report answer accurate to three decimal places.) test statistic =____________

As such, the final conclusion is that...

• There is sufficient evidence to warrant rejection of the claim that the proportion of women over 40 who regularly have mammograms is more than 0.39.
• There is not sufficient evidence to warrant rejection of the claim that the proportion of women over 40 who regularly have mammograms is more than 0.39.
• The sample data support the claim that the proportion of women over 40 who regularly have mammograms is more than 0.39.
• There is not sufficient sample evidence to support the claim that the proportion of women over 40 who regularly have mammograms is more than 0.39.

• 4. Test the claim that the proportion of people who own cats is larger than 60% at the 0.005 significance level. The null and alternative hypothesis would be:

H0:=0.6H0:=0.6 HA:<0.6HA:<0.6

H0:p=0.6H0:p=0.6 HA:p<0.6HA:p<0.6

H0:p=0.6H0:p=0.6 HA:p>0.6HA:p>0.6

H0:=0.6H0:=0.6 HA:0.6HA:0.6

H0:=0.6H0:=0.6 HA:>0.6HA:>0.6

H0:p=0.6H0:p=0.6 HA:p0.6HA:p0.6

5.Nearsighted:It is believed that nearsightedness affects about 8% of all children. In a random sample of 194 children, 21 are nearsighted. (a) Construct hypotheses appropriate for the following question: do these data provide evidence that the 8% value is inaccurate?

• Ho: p = .08 Ha: p .08
• Ho: p = .08 Ha: p < .08
• Ho: p = .08 Ha: p > .08

What is the conclusion of the hypothesis test?=0.1.

• Since p we do not have enough evidence to reject the null hypothesis
• Since p we reject the null hypothesis and accept the alternative
• Since p< we fail to reject the null hypothesis
• Since p we accept the null hypothesis
• Since p< we reject the null hypothesis and accept the alternative