Question 4 of 13 Some have argued that throwing darts at the stock pages to deci

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Question 4 of 13

Some have argued that throwing darts at the stock pages to decide which companies to invest in could be a successful stock-picking strategy. Suppose a researcher decides to test this theory and randomly chooses 150 companies to invest in. After 1 year, 81 of the companies were considered winners; that is, they outperformed other companies in the same investment class. To assess whether the dart-picking strategy resulted in a majority of winners, the researcher tested H0: =0.5 versus H1: >0.5 and obtained a P-value of 0.1636. Explain what this P-value means. A. About 81 in 150 samples will give a sample proportion as high or higher than the one obtained if the population proportion really is 0.5. B. About 16 in 100 samples will give a sample proportion as high or higher than the one obtained if the population proportion really is 0.5. C. About 81 in 150 samples will give a sample proportion as high or higher than the one obtained if the population proportion really is greater than 0.5. D. About 16 in 100 samples will give a sample proportion as high or higher than the one obtained if the population proportion really is greater than 0.5. Reset Selection

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Question 4 of 13

1.0 Points Referring to the information provided in question 3, write a conclusion for the researcher. (Assume is 0.1 or less.) A. Because this probability is small, reject the null hypothesis. There is sufficient evidence to conclude that the dart-picking strategy resulted in a majority of winners. B. Because this probability is small, do not reject the null hypothesis. There is not sufficient evidence to conclude that the dart-picking strategy resulted in a majority of winners. C. Because this probability is not small, do not reject the null hypothesis. There is not sufficient evidence to conclude that the dart-picking strategy resulted in a majority of winners. D. Because this probability is not small, reject the null hypothesis. There is sufficient evidence to conclude that the dart-picking strategy resulted in a majority of winners

Explanation / Answer

(a) A. About 81 in 150 samples will give a sample proportion as high or higher than the one obtained if the population proportion really is 0.5.

(b)  C. Because this probability is not small, do not reject the null hypothesis. There is not sufficient evidence to conclude that the dart-picking strategy resulted in a majority of winners.

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