A well-known brokerage firm executive claimed that 40% 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 700 people, 42% of them said they are confident of meeting their goals. Test the claim that the proportion of people who are confident is larger than 40% at the 0.005 significance level. The null and alternative hypothesis would be:

H0:p=0.4H0:p=0.4 H1:p0.4H1:p0.4 H0:p0.4H0:p0.4 H1:p<0.4H1:p<0.4 H0:p0.4H0:p0.4 H1:p>0.4H1:p>0.4 H0:=0.4H0:=0.4 H1:0.4H1:0.4 H0:0.4H0:0.4 H1:>0.4H1:>0.4 H0:0.4H0:0.4 H1:<0.4H1:<0.4 The test is:

right-tailed two-tailed left-tailed 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