Questions 33 - 39 concern the following idea:

A writer for a magazine on finance and wealth management plans to do a piece on increasing interest rates. She thinks that the central bank will increase interest rates by at most 2 basis points over the next year. To support her thinking, she surveys 100 economists and finds that 51 of them agree with her opinion. In her article, she later writes "Significantly more than half of economists believe that the central bank will increase interest by at most 2 basis points over the next year". Is this statement warranted?

Let p be the population proportion of economists that think that the central bank will increase interest rates by at most 2 basis points over the next year.

33

If you were trying to show support for the writer's claim, state the necessary null and alternative hypotheses for conducting a hypothesis test.

a. H0 : p = 0.5

H1 : p ? 0.5

b. H0 : p ? 0.02

H1 : p > 0.02

c. H0 : p ? 0.5

H1 : p > 0.5

d. H0 : p

H1 : p ? 0.5

e. H0 : p ? 0.5

H1 : p

34

ME 34 Questions 33 - 39 concern the following ioea: A writer for a magazine on nance and wealth management plans to write a piece on increasing interest rates. She thinks that the central bank will increase interest rates by at most 2 basis points over the next year. To support her thinking, she surveys 100 economists and nds that 51 of them agree with her opinion. In her article, she later writes "Signicantly more than half of economists believe that the central bank will increase interest by at most 2 basis points over the next year". Is this statement warranted? Let p be the population proportion of economists that think that the central bank will increase interest rates by at most 2 basis points over the next year. Which of the following is the correct formula for calculating the observed test statistic? (Where n denotes the sample size) a. A _ O P P0 p ( l - p )/ F" .b' p-100 ME 39 Questions 33 - 39 concern the following idea: A writer for a magazine on nance and wealth management plans to write a piece on increasing interest rates. She thinks that the central bank will increase interest rates by at most 2 basis points over the next year. To support her thinking, she surveys 100 economists and nds that 51 of them agree with her opinion. In her article, she later writes "Signicantly more than half of economists believe that the central bank will increase interest by at most 2 basis points over the next year". Is this statement warranted? Let p be the population proportion of economists that think that the central bank will increase interest rates by at most 2 basis points over the next year. Assume we want to calculate a 100(1-o)% confidence interval for p. What is the correct formula to use? 0 a' POU-Po) PiZu/z :1 ob 7707?) 7712\": n Och p0(l-p0) p :i:zu/2T P :l: zu/ZT