Solution Found!
You Explain It! Stock Analyst Some have argued that
Chapter , Problem 13AYU(choose chapter or problem)
Problem 13AYU
Problem
You Explain It! Stock Analyst Some have argued that throwing darts at the stock pages to decide which companies to invest in could be a successful stock-picking strategy. Suppose a researcher decides to test this theory and randomly chooses 100 companies to invest in. After 1 year, 53 of the companies were considered winners; that is, they outperformed other companies in the same investment class. To assess whether the dart-picking strategy resulted in a majority of winners, the researcher tested H0: p = 0.5 versus H1 p > 0.5 and obtained a P-value of 0.2743. Explain what this P-value means and write a conclusion for the researcher.
Questions & Answers
QUESTION:
Problem 13AYU
Problem
You Explain It! Stock Analyst Some have argued that throwing darts at the stock pages to decide which companies to invest in could be a successful stock-picking strategy. Suppose a researcher decides to test this theory and randomly chooses 100 companies to invest in. After 1 year, 53 of the companies were considered winners; that is, they outperformed other companies in the same investment class. To assess whether the dart-picking strategy resulted in a majority of winners, the researcher tested H0: p = 0.5 versus H1 p > 0.5 and obtained a P-value of 0.2743. Explain what this P-value means and write a conclusion for the researcher.
ANSWER:
Problem 13AYU
Answer:
Step1 of 2:
We have n = 100, x = 53, = 0.05.
100*0.50(1 - 0.50) > 10.
25 > 10
a).
Consider the appropriate null and alternative hypothesis are:
against