A well-known brokerage firm executive claimed that at least 90% of investors are currently confident of meeting their investment goals. An XYZ Investor Optimism Survey, conducted over a two week period, found that in a sample of 800 people, 88% of them said they are confident of meeting their goals.

a) For this claim state the null and alternative hypothesis as an expression: (multiple choice)

A. H0:?=0.9

HA:??0.9

B. H0:p=0.9

HA:p<0.9

C. H0:?=0.9

HA:?>0.9

D. H0:?=0.9

HA:?<0.9

E. H0:p=0.9

HA:p>0.9

F. H0:p=0.9

HA:p?0.9

b) State the null hypothesis as a complete sentence:

State the alternative hypothesis as a complete sentence:

This test would require a test. (multiple choice)

a. right-tailed

b. quad-tailed

c. left-tailed

d. two-tailed

c) How could we re-write the claim to make this a two-tail test? (sentence)

d) Test the claim that the proportion of people who are confident is smaller than 90% at the 0.05 significance level. Determine the following:

The test statistic: (round to the 3rd decimal)

The p-value: (round to the 4th decimal)

e) What would be our formal conclusion about the null hypothesis at a 0.05 significance level?