A researcher wanted to determine whether the stock market moves up and down randomly. He recorded the movement of the Dow Jones Industrial Average for 44 consecutive business days. The observed data showed that the market moved up 20 times, moved down 24 times, and had 16 runs during these 44 days. You are to perform a test for randomness using a significance level of 9%. What is the decision if the variance of the Runs is 10.5631. Non random pattern Random pattern Cannot make a decision
A researcher wanted to determine whether the stock market moves up and down randomly. He recorded the movement of the Dow Jones Industrial Average for 44 consecutive business days. The observed data showed that the market moved up 20 times, moved down 24 times, and had 16 runs during these 44 days. You are to perform a test for randomness using a significance level of 9%. What is the decision if the variance of the Runs is 10.5631. Non random pattern Random pattern Cannot make a decision
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Question
![A researcher wanted to determine whether the stock market moves up and
down randomly. He recorded the movement of the Dow Jones Industrial Average
for 44 consecutive business days. The observed data showed that the market
moved up 20 times, moved down 24 times, and had 16 runs during these 44
days. You are to perform a test for randomness using a significance level of 9%.
What is the decision if the variance of the Runs is 10.5631.
Non random pattern
Random pattern
Cannot make a decision](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F408e3cb1-0000-4182-9d0c-718ebe0cb450%2Ff37a38f8-9df6-46b0-b217-98372b6b4838%2Fbn7ct0j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A researcher wanted to determine whether the stock market moves up and
down randomly. He recorded the movement of the Dow Jones Industrial Average
for 44 consecutive business days. The observed data showed that the market
moved up 20 times, moved down 24 times, and had 16 runs during these 44
days. You are to perform a test for randomness using a significance level of 9%.
What is the decision if the variance of the Runs is 10.5631.
Non random pattern
Random pattern
Cannot make a decision
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