Monday, August 15, 2011

Statistic test help!?!?

Many people have misconceptions about how profitable small, consistent investments can be. In a survey of 1010 randomly selected US adults, only 374 responded that they thought that an investment of $25 per week over 40 years with a 7% annual return would result in a sum of over $100,000 (the correct amount is $286,640). Is there sufficient evidence to conclude that fewer than half of US adults are aware that such an investment would result in a sum over $100,000? Test the relevant hypothesis at alpha = 0.05

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