Question

Some have argued that throwing darts at the stock pages to decide which companies to invest in could be a successful stockpicking strategy. Suppose a researcher decides to this theory and randomly chooses 200 companies to invest in Aher yow, 106 of the companies were considered winners, that is, they outperformed other companies in the same investments . To assess whether the dart picking wategy resulted in a majority owners, the researcher lesed Hg p=0.5 versus Hyp>0.5 and obtained a P value of 0.1801 Explain what is a means and write a conclusion for the researcher (Assume a 0.1 or less.) Choose the correct explanation below. O A. About 106 in 200 samples will give a sample proportion as high or higher than the one obtained if the population proportion really is greater than 05. OS About 106 in 200 samples will give a sample proportion as high or higher than the one obtained in the population proportion really is 05. OG About 20 in 100 samples will give a sample proportion as high or higher than the one obtained the population proportion realy 0.5 OD About 20 in 100 samples will give a sample proportion as high or higher than the one and the population proportion really is greater than 05. Choose the correct conclusion below O A. Because the value is small, do not reject the nul hypothesis. There is not sufficient evidence lo conclude that the art picking strategy resulted in a majority of Winners OB Because the value is smal reject the null hypothesis. There is sufficient evidence lo conclude that the dari picking strategy rested in a majority of winners. OC. Because the value is targe, reject the nut hypothesis. There is sufficient evidence lo conclude that the dart picking strategy resulted in a majority of winners. OD. Because the value is large do not reject the hypothesis. There is not suicient evidence lo conclude that the dartpicking strategy resulted in a majority of winners

Answer 1

Since for conducting the proportion test we are assuming null hypothesis as true hence here we are considering 200 samples and 106 were considered.as winner.

1 About 106 of the 200 of the samples will give a sample proportion as high or higher than one obtained if the population proportion is really 0.5

2. Since the p value is 0.1961 which is greater than 0.1 we do not reject the null hypothesis There is not sufficient evidence to conclude that the strategy resulted in majority of winners