## Related questions with answers

The American Association of Individual Investors conducts a weekly survey of its members to measure the percentage who are bullish, bearish, and neutral on the stock market for the next six months. For the week ending November 7, 2012, the survey results showed $38.5 \%$ bullish, $21.6 \%$ neutral, and $39.9 \%$ bearish. Consider these results are based on a sample of 300 AAII members.

a. Over the long term, the proportion of bullish AAII members is .39. Conduct a hypothesis test at the $5 \%$ level of significance to see if the current sample results show that bullish sentiment differs from its long-term average of .39. What are your findings?

Solution

VerifiedThe goal of this task is to test whether the current proportion of bullish AAII members is significantly different than the long-term average of $0.39$.

Denote that value with $p_0=0.39$.

We are given a sample of $n=300$ AAII members. It turned out that $38.5\%$ of them were bullish members. Therefore, the point estimate of the proportion of bullish members in the sample is $\overline p=0.385$.

Denote the current population proportion of bullish members with $p$.

*What are the hypotheses for this test?*

## Create an account to view solutions

## Create an account to view solutions

## More related questions

1/4

1/7