Speaking to a group of analysts in January 2006, a brokerage firm executive claimed that at least 70% of investors are currently confident of meeting their investment objectives. A UBS Investor Optimism survey conducted over the period of January 2 to January 15 found that 67% of investors were confident of meeting their investment objectives.

11A) Formulate thehypothesesthat can be used to test the validity of the brokerage firm's executive's claim.