Question

The bullsh sentiment of individual investors was 27.6% ΑΑΠ Ouma Feb uary 2009). The bullish sentiment was reported to be 48.7% cne week earier and 39.7% one month earlier. The sentiment measures were based on poll conducted by the Amercan Assocaton of Indvadual investors. Assume that each bullah sentiment measure was based on a sample of 240 investors. a. Develop 95% confidence interval for the difference between the bulish sentment measures for the most recent two weeks (to 3 inals). -126296 b. Develop hypotheses so that rejection of the nuil hypothesis will alow us to conclude that the most recent bulish sentiment is weaker than that of one month earlier Ho: P1-Ps greater than or equal to e. Conduct a hypothesis test of part (b) using a-.o1. What is your condusion we reject HO and conciude that bulish sentiment has declined over the one-monts periord

Answer 1

Given is a simple 2 proportion problem which can be solved easily using the given relations.