An analyst is trying to determine whether the prices of certain stocks on the NASDAQ are independent of the industry to which they belong. She examines four industries and, within each industry, categorizes each stock according to its price (high-priced, average- priced, low-priced). Stock Price High Average Low I 35 37 26 Industry III 29 29 23 II 27 35 27 Test statistic IV 33 31 28 a. Choose the competing hypotheses to determine whether stock price depends on the industry. O Ho: Stock price is independent of the industry.; HA: Stock price is dependent of the industry. O Ho: Stock price is dependent on the industry.; HA: Stock price is independent of the industry. b-1. Calculate the value of the test statistic. Note: Round intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
An analyst is trying to determine whether the prices of certain stocks on the NASDAQ are independent of the industry to which they
belong. She examines four industries and, within each industry, categorizes each stock according to its price (high-priced, average-
priced, low-priced).
Stock Price
High
Average
Low
I
35
37
26
Industry
III
29
29
23
Test statistic
II
27
35
27
b-2. Find the p-value.
a. Choose the competing hypotheses to determine whether stock price depends on the industry.
IV
33
O Ho: Stock price is independent of the industry.; HA: Stock price is dependent of the industry.
O Ho: Stock price is dependent on the industry.; HA: Stock price is independent of the industry.
31
28
b-1. Calculate the value of the test statistic.
Note: Round intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.
O 0.05 ≤p-value < 0.10
O 0.025 s p-value <0.05
O 0.01 < p-value < 0.025
O p-value < 0.01
O p-value > 0.10
c. At the 1% significance level, what can the analyst conclude?
O Reject Ho; there is not enough evidence to support the claim that the stock price is dependent on the industry.
O Reject Ho; there is enough evidence to support the claim that the stock price is dependent on the industry.
O Do not reject Ho; there is not enough evidence to support the claim that the stock price is dependent on the industry.
O Do not reject Ho; there is enough evidence to support the claim that the stock price is dependent on the industry.
Transcribed Image Text:An analyst is trying to determine whether the prices of certain stocks on the NASDAQ are independent of the industry to which they belong. She examines four industries and, within each industry, categorizes each stock according to its price (high-priced, average- priced, low-priced). Stock Price High Average Low I 35 37 26 Industry III 29 29 23 Test statistic II 27 35 27 b-2. Find the p-value. a. Choose the competing hypotheses to determine whether stock price depends on the industry. IV 33 O Ho: Stock price is independent of the industry.; HA: Stock price is dependent of the industry. O Ho: Stock price is dependent on the industry.; HA: Stock price is independent of the industry. 31 28 b-1. Calculate the value of the test statistic. Note: Round intermediate calculations to at least 4 decimal places and final answer to 3 decimal places. O 0.05 ≤p-value < 0.10 O 0.025 s p-value <0.05 O 0.01 < p-value < 0.025 O p-value < 0.01 O p-value > 0.10 c. At the 1% significance level, what can the analyst conclude? O Reject Ho; there is not enough evidence to support the claim that the stock price is dependent on the industry. O Reject Ho; there is enough evidence to support the claim that the stock price is dependent on the industry. O Do not reject Ho; there is not enough evidence to support the claim that the stock price is dependent on the industry. O Do not reject Ho; there is enough evidence to support the claim that the stock price is dependent on the industry.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 19 images

Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman