A well-known brokerage firm executive claimed that 90% 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 800 people, 88% of them said they are confident of meeting their goals.

Test the claim that the proportion of people who are confident is 90% at the 0.05 significance level. Determine the following:

The test statistic:

The p-value:

What would be our formal conclusion about the null hypothesis at a 0.05 significance level? Would we reject or fail to reject the null hypothesis? Justify your answers using statistical terms.

What practical conclusion can we make about the claim?Write the practical conclusion as if you are explaining your outcome to someone who has not taken a Statistics course.