Question

Questions 23 and 29: Use the following information to answer each question. A recent book noted that only 20% of all investment managers outperform the Dow Jones Industrial Average over a five-year period. A random sample of 200 investment managers that had graduated from one of the top ten business programs in the country were followed over a five-year period. Fifty of these outperformed the Dow Jones Industrial Average. Let p be the true proportion of investment managers who graduated from one of the top ten business programs who outperformed the Dow Jones over a five-year period.
23. Based on the results of the sample, a 95% confidence interval for p is:
a. (1.95, 3.15)
b. (0.0195, 0 .0315)
c. (0.190, 0.310)
d. (0.028, 0.031)
e. (0.195, 0.315)
f. We can assert that p = 0.20 with 100% confidence, because only 20% of investment managers outperform the standard indexes.
24. Suppose you had been in charge of designing the study. What sample size would be needed to construct a margin of error of 2% with 95% confidence? Use the prior estimate of pâ=0.2 for this estimate.
a. n=2401
b. n=1537
c. n=16
d. n=1801
e. n>30
Suppose you wish to see if there is evidence that graduates of one of the top ten business programs performs better than other investment managers. Conduct a hypothesis test. Use a level of significance of α=0.05
25. Which of the following pairs of hypotheses is the most appropriate for addressing this question?
a. H0: p=0.2

Ha: p<0.2
b. H0: p=0.2

Ha: pâ 0.2
c. H0: p=0.2

Ha: p>0.2
d. H0: p<0.2

Ha: p=0.2
e. H0: pâ 0.2

Ha: p=0.2
f. H0: p>0.2

Ha: p=0.2
26. How many measurements must you have in order to assure that p^ is normally distributed?
a. nâ¥30
b. nâ¥5
c. npâ¥10 and n(1âp)â¥10
d. npâ¥5 and n(1âp)â¥5
27. The value of your test statistic is:
a. 1.768
b. 0.039
c. 1.923
d. 0.077
28. The P-value of your test is:
a. 1.768
b. 0.039
c. 1.923
d. 0.077
29. Is there sufficient evidence to conclude that graduates from the top ten business programs perform better than other investment managers?
a. Yes. I rejected H0
b. Yes. I failed to reject H0
c. Yes. I accepted Ha
d. No. I rejected H0
e. No. I failed to reject H0
f. No. I failed to accept Ha

Answer 1

Answer:

23. Calculate the P-value for this hypothesis test. Assume the requirements for the test are satisfied.

0.087

29. Which of the following pairs of hypotheses is the most appropriate for addressing this question?

H0:p=0.2 Ha:p>0.2

Step-by-step explanation

test statistic: 6.579

You reject Ha