In 1995, a random sample of 100 adults that had investments in the stock market

Question

In 1995, a random sample of 100 adults that had investments in the stock market found that only 20 said they were investing for the long haul rather than to make quick profits. A random sample of 100 adults that had investments in the stock market in 2002 found that 36 were investing for the long haul rather than to make quick profits. Let p1 and p2 be the actual proportion of all adults with investments in the stock market in 1995 and in 2002, respectively, that were investing for the long haul. Reference: Ref 8-11 You wonder whether there is evidence of an increase between 1995 and 2002 in the proportion of adults with investments in the stock market who are investing for the long haul? To determine this, you test the hypotheses H0: p1 = p2, Ha: p1 < p2. The P-value of your test is: between 0.01 and 0.001. below 0.001. between 0.10 and 0.05. between 0.05 and 0.01.

Explanation / Answer

The statistical software output for this problem is:

Two sample proportion summary hypothesis test:
p1 : proportion of successes for population 1
p2 : proportion of successes for population 2
p1 - p2 : Difference in proportions
H0 : p1 - p2 = 0
HA : p1 - p2 < 0

Hypothesis test results:

Hence,

P - value is between 0.01 and 0.001.

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