Twenty economist were chosen randomly, and asked to predict if the national economy would improve during...

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Twenty economist were chosen randomly, and asked to predict ifthe national economy would improve during the next 12 months.Eleven of the economists predicted an increase, and nine economistspredicted a decrease in the economy. Conduct a hypothesis test todetermine if there is a difference in the prediction for thenational economy during the next 12 months. Use the normalapproximation to the Binomial. In addition, assign a â€œ+â€ sign toâ€œImproveâ€ and a â€œ-â€ sign to â€œDecrease.â€ Conduct a two-tailed testat the .05 significance level. What is(are) the criticalvalue(s)?

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4.2 Ratings (824 Votes)

Critical values = + Z_0.025 = -1.96 , 1.96

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