A Hypothesis Test Is to Be Performed $9.1 \%$
A) Null Hypothesis: Proportion of Castletown Children with Asthma

question 231

Multiple Choice

A hypothesis test is to be performed. State the null and alternative hypotheses.
-An environmental group believes that the health of the residents of Castletown is adversely affected by the oil refinery in their town. It believes that in Castletown, the proportion of children who suffer from asthma is higher than the nationwide proportion of $9.1 \%$ .

• A) Null hypothesis: proportion of Castletown children with asthma \(> 9.1 \%\)
• Alternative hypothesis: proportion of Castletown children with asthma \(= 9.1 \%\)
• B) Null hypothesis: proportion of Castletown children with asthma \(< 9.1 \%\)
• Alternative hypothesis: proportion of Castletown children with asthma \(> 9.1 \%\)
• C) Null hypothesis: proportion of Castletown children with asthma \(= 9.1 \%\)
• Alternative hypothesis: proportion of Castletown children with asthma \(\geq 9.1 \%\)
• D) Null hypothesis: proportion of Castletown children with asthma \(= 9.1 \%\)
• Alternative hypothesis: proportion of Castletown children with asthma \(> 9.1 \%\)

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Definitions:

Semistrong-form Efficiency

A hypothesis that asserts the market price of securities already reflects all publicly available information, making it hard to achieve higher returns.

Weak-form Efficiency

A market efficiency theory suggesting that past stock prices and volume data do not affect stock prices and thus cannot predict future stock movements.

Positive-earnings Surprises

Situations where the reported earnings of a company exceed the expected earnings, often leading to a positive reaction in the stock market.

Overly Optimistic

This term refers to an excessive belief in the favorable outcomes of events or conditions, often disregarding the likelihood of negative outcomes.