It is assumed that investors are equally split between those who prefer 'growth' stocks and those who prefer 'value' stocks. In a random sample of 500 investors, 255 agreed with the statement 'Growth stocks are better than value stocks'. i. Conduct a two-sided hypothesis test, at the 10% significance level, to test whether in the population of investors there are equal preferences for growth and value stocks. Show all steps of your calculation and use the 'critical value' approach to perform the test. ii. Calculate the p-value of the test statistic value calculated in part i.

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It was assumed that investors are equally split between those who prefer ‘growth’
stocks and those who prefer ‘value’ stocks. In a random sample of 500 investors,
255 agreed with the statement ‘Growth stocks are better than value stocks’.

It is assumed that investors are equally split between those who prefer 'growth'
stocks and those who prefer 'value' stocks. In a random sample of 500 investors,
255 agreed with the statement 'Growth stocks are better than value stocks'.
i. Conduct a two-sided hypothesis test, at the 10% significance level, to
test whether in the population of investors there are equal preferences
for growth and value stocks. Show all steps of your calculation and use
the 'critical value' approach to perform the test.
ii. Calculate the p-value of the test statistic value calculated in part i.
Transcribed Image Text:It is assumed that investors are equally split between those who prefer 'growth' stocks and those who prefer 'value' stocks. In a random sample of 500 investors, 255 agreed with the statement 'Growth stocks are better than value stocks'. i. Conduct a two-sided hypothesis test, at the 10% significance level, to test whether in the population of investors there are equal preferences for growth and value stocks. Show all steps of your calculation and use the 'critical value' approach to perform the test. ii. Calculate the p-value of the test statistic value calculated in part i.
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