State the appropriate hypotheses for your significance test

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Reference no: EM131456591

Question: A recent article concerning bullish and bearish sentiment about the stock market reported that 41% of investors responding to an American Institute of Individual Investors (AAII) poll were bullish on the market and 26% were bearish ( USA Today. January II. 2010). The article also reported that the long-term average measure of bullishness is .39 or 39%. Sup-pose the AAII poll used a sample size of 450. Using .39 (the long-term average) as the population proportion of investors that are bullish, conduct a hypothesis test to determine if the current proportion of investors that are bullish is significantly greater than the long-term average proportion.

a. State the appropriate hypotheses for your significance test.

b. Use the sample results to compute the test statistic and the p-value.

c. Using α = .10, what is your conclusion?

Reference no: EM131456591

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