A recent article concerning bullish and bearish sentiment about the stock market reported that 41% of investors responding to an American Institute of Individual Investors (AAII) poll were bullish on the market and 26% were bearish (USa today, January 11, 2010). The article also reported that the long-term average measure of bullishness is .39 or 39%. Suppose the AAII poll used a sample size of 450. using .39 (the long-term average) as the population proportion of investors who are bullish, conduct a hypothesis test to determine if the current proportion of investors who are bullish is significantly greater than the long-term average proportion.

a. State the appropriate hypotheses for your significance test.

b. use the sample results to compute the test statistic and the p-value.

c. using α = .10, what is your conclusion?