Question

Ten years ago 53% of American families owned stocks or stock funds. Sample data collected by the Investment Company Institute indicate that the percentage is now 44%.

(a)

Choose the appropriate hypotheses such that rejection of H₀ will support the conclusion that a smaller proportion of American families own stocks or stock funds this year than 10 years ago.

H0: p	=,≥, or ≤ _____
Ha: p	=,>,or< _____

(b)

Assume the Investment Company Institute sampled 300 American families to estimate that the percent owning stocks or stock funds is 44% this year. What is the p value for your hypothesis test? If required, round your answer to four decimal places. Do not round your intermediate calculations.

(c)

At α = 0.01, what is your conclusion?

We reject or fail to reject the null hypothesis. We can or cannot conclude that a smaller proportion of American families own stocks or stock funds this year than they did 10 years ago.

Answer 1