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 46%.

(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:

Ha:

(b) Assume the Investment Company Institute sampled 300 American families to estimate that the percent owning stocks or stock funds is 46% 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?

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Answer 1