A well-known brokerage firm executive claimed that 20% 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 200 people, 25% of them said they are confident of meeting their goals. Test the claim that the proportion of people who are confident is larger than 20% at the 0.01 significance level. The null and alternative hypothesis would be:

H0:p=0.2H0:p=0.2 H1:p0.2H1:p0.2 H0:p0.2H0:p0.2 H1:p>0.2H1:p>0.2 H0:p0.2H0:p0.2 H1:p<0.2H1:p<0.2 H0:0.2H0:0.2 H1:<0.2H1:<0.2 H0:0.2H0:0.2 H1:>0.2H1:>0.2 H0:=0.2H0:=0.2 H1:0.2H1:0.2 The test is:

right-tailed left-tailed two-tailed Correct The test statistic is: (to 3 decimals) The p-value is: (to 4 decimals) Based on this we:

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