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Please help. I keep doing these wrong. A well-known brokerage firm executive claimed that 90% of investors are currently confident of meeting their investment goals.

Please help. I keep doing these wrong.

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, 87% of them said they are confident of meeting their goals. Test the claim that the proportion of people who are confident is smaller than 90% at the 0.005 significance level. A)The null and alternative hypothesis would be:

  • H0:0.9 H1:>0.9
  • H0:p=0.9 H1:p<0.9
  • H0:p=0.9 H1:p>0.9
  • H0:0.9 H1:<0.9
  • H0:=0.9 H1:0.9
  • H0:p=0.9 H1:p0.9

B) The test is:

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

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

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