Answer:
It is failed to reject the null hypotehesis. There is no enough evidence that the proportion of investors who are risk-averse is not 0.6.
Step-by-step explanation:
We have to perform an hypothesis test of a proportion.
The null and alternative hypothesis are:
[tex]H_0: \pi=0.6\\\\H_1: \pi\neq 0.6[/tex]
We state a significance level of 0.1.
The sample proportion is
[tex]p=21/33=0.636[/tex]
The standard deviation is
[tex]s=\sqrt{\frac{p(1-p)}{N}} =\sqrt{\frac{0.6*0.4}{33}}=0.085[/tex]
The test statistic z is calculated as
[tex]z=\frac{p-\pi-0.5/N}{\sigma} =\frac{0.636-0.6-0.5/33}{0.085}=\frac{0.021}{0.085}=0.247[/tex]
The P-value of z=0.247 is P=0.8. This value is bigger than the significance level, so the efect is not significant.
It is failed to reject the null hypotehesis. There is no enough evidence that the proportion of investors who are risk-averse is not 0.6.
