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.
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
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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.
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