A well-known brokerage firm executive claimed that 70% 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, 71% of them said they are confident of meeting their goals. Test the claim that the proportion of people who are confident is larger than 70% at the 0.005 significance level. 1) The null and alternative hypothesis would be:

- H0:p0.7H0:p0.7 - H1:p<0.7H1:p<0.7 - H0:0.7H0:0.7 - H1:<0.7H1:<0.7 - H0:p=0.7H0:p=0.7 - H1:p0.7H1:p0.7 - H0:0.7H0:0.7 - H1:>0.7H1:>0.7 - H0:=0.7H0:=0.7 - H1:0.7H1:0.7 - H0:p0.7H0:p0.7 - H1:p>0.7H1:p>0.7 2) The test is:

- right-tailed - left-tailed - two-tailed 3) The test statistic is: _______ (to 3 decimals) 4) The p-value is: ______ (to 4 decimals) 5) Based on this we:

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