periences. She surveyed recent graduates from her school\'s MBA program and foun
ID: 2922676 • Letter: P
Question
periences. She surveyed recent graduates from her school's MBA program and found that 27% of the 120 graduates from the previous year claim to have encountered unethical business practices in the workplace. Can she conclude that her graduates' experiences are different? 42. Stocks. A young investor believes that he can beat the market by picking stocks that will increase in value. Assume that on average 50% of the stocks selected by a portfolio manager will increase over 12 months. Of the 25 stocks that the young investor bought over the last 12 months, 14 have increased. Can he claim that he is better at predicting in- creases than the typical portfolio manager? 43. U.S. politics. Gallup reported in March 2012 that 73% of American investors say that a politically divided fed- eral government is hurting the U.S. investment climate "a lot." Is there any evidence that the percentage has changed significantly from the 74% reported in September 2011?Explanation / Answer
H0: p = .50
Ha: p !=.50
n = 25, x = 14
pcap = x/n = 14/25 = .56
So, t = (pcap-p)/sqrt(pcap*pcap/n) = (.50-.56)/sqrt(.56*.44/25) = -.6044
t value of -.6044 @ df of n-1 = 24 , t=2.064
Since our t value is less than critical value of 2.064 and >-2.064 we conclude that we fail to reject Ho.
So, we conclude that he is NOT better at predicting increases than the typical portfolio manager
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