Question

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 300 companies to invest in. After 1 year, 153 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 Ho: p = 0.5 versus H :p> 0.5 and obtained a P-value of 0.3645. Explain what this P-value means and write a conclusion for the researcher. (Assume a is 0.1 or less.) Choose the correct explanation below. O A. About 36 in 100 samples will give a sample proportion as high or higher than the one obtained if the population proportion really is 0.5. OB. About 153 in 300 samples will give a sample proportion as high or higher than the one obtained if the population proportion really is greater than 0.5. OC. About 36 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. OD. About 153 in 300 samples will give a sample proportion as high or higher than the one obtained if the population proportion really is 0.5. Choose the correct conclusion below. O A. 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. O B. 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. O C. 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. OD. 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.

Answer 1

p - Value is the probability of getting the results as extreme as the one in the sample assuming that null hypothesis is true. Hence,

Correct explanation: Option A is correct.

Correct conclusion: Option D is correct.