Question

Twenty economist were chosen radomly, and asked to predict if the national economy would improve during the next 12 months. Eleven of the economists predicted an increase, and nine economists predicted a decrease in the economy. Conduct a hypothesis test to determine if there is a difference in the prediction for the national economy during the next 12 months. Use the normal approximation to the Binomial. In addition, assign a “+” sign to “Improve” and a “-” sign to “Decrease.” Conduct a two-tailed test at the .05 significance level. What is the test statistic for the hypothesis test?

Answer 1

Here n= n1=n2

Test hypothesis:-

Vs.