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 100 companies to invest in. After 1 year, 53 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 Upper H 0: pequals0.5 versus Upper H 1: pgreater than0.5 and obtained a P-value of 0.2743. Explain what this P-value means and write a conclusion for the researcher. (Assume alpha is 0.1 or less.)
Choose the correct explanation below.
A.
About 27 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.
B.
About 53 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.
C.
About 53 in 100 samples will give a sample proportion as high or higher than the one obtained if the population proportion really is 0.5.
D.
About 27 in 100 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.
A.
Because the P-value is large, reject the null hypothesis. There is sufficient evidence to conclude that the dart-picking strategy resulted in a majority of winners.
B.
Because the P-value is large, do not reject the null hypothesis. There is not sufficient evidence to conclude that the dart-picking strategy resulted in a majority of winners.
C.
Because the P-value is small, reject the null hypothesis. There is sufficient evidence to conclude that the dart-picking strategy resulted in a majority of winners.
D.
Because the P-value 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.