any investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 70 stocks traded on the NYSE that day showed that 31 went up. You are conducting a study to see if the proportion of stocks that went up is is significantly more than 0.3. You use a significance level of α=0.002α=0.002. What is the test statistic for this sample? (Report answer accurate to three decimal places.) test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.) p-value = The p-value is... less than (or equal to) αα greater than αα
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.
A sample of 70 stocks traded on the NYSE that day showed that 31 went up.
You are conducting a study to see if the proportion of stocks that went up is is significantly more than 0.3. You use a significance level of α=0.002α=0.002.
What is the test statistic for this sample? (Report answer accurate to three decimal places.)
test statistic =
What is the p-value for this sample? (Report answer accurate to four decimal places.)
p-value =
The p-value is...
- less than (or equal to) αα
- greater than αα
This test statistic leads to a decision to...
- reject the null
- accept the null
- fail to reject the null
As such, the final conclusion is that...
- There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is is more than 0.3.
- There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is is more than 0.3.
- The sample data support the claim that the proportion of stocks that went up is is more than 0.3.
- There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is is more than 0.3.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
