Are stock splits beneficial to stockholders? SNL Financial studied stock splits in the banking industry over an 18-month period. For a sample of 20 stock splits, 14 led to an increase in investment value, 4 led to a decrease in investment value, and 2 resulted in no change. Conduct a sign test to determine if it can be concluded that stock splits are beneficial for holders of bank stocks. What are the null and alternative hypotheses? Using α=.05 , what is your conclusion?

Are stock splits beneficial to stockholders? SNL Financial studied stock splits in the banking industry over an 18-month period. For a sample of 20 stock splits, 14 led to an increase in investment value, 4 led to a decrease in investment value, and 2 resulted in no change. Conduct a sign test to determine if it can be concluded that stock splits are beneficial for holders of bank stocks. What are the null and alternative hypotheses? Using α=.05 , what is your conclusion?

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks

Related questions

Q: Lester Hollar is vice president for human resources for a large manufacturing company. In recent…

A: 6-6 =0 7-4=3 7-3 = 4 6-4=2 4-2=2 6-6=0 7-4=3 6-7=-1 0, 3, 4, 2, 2, 0, 3, -1We calculate sample mean…

Q: Spam: A researcher reported that 71.8 % of all email sent in a recent month was spam. A system…

A: Given data: Significance level= 0.01, and 0.05 p =.69 x = 365 n = 500

Q: OxyContin The drug OxyContin (oxycodone) is used to treat pain, but it is dangerous because it is…

A: Solution:Given that,Level of significance = 0.05Sample size(x) = 52Total (n) =227

Q: Recently, a large academic medical center determined that 6 of 15 employees in a particular position…

A: given data claim : p ≠0.44n = 15x = 6α = 0.05

Q: A geneticist conducts an experiment with beans, one sample of offspring consisted of 458 green beans…

A: Given that Total beans=458+162=620 Green beans=458 Yellow beans=162

Q: researcher is using a one-way ANOVA to see whether a significant difference can be found between 3…

A: Given that A researcher is using a one-way ANOVA Claim : whether a significant difference can be…

Q: In the past, 32% of a country club's members brought guests to play golf sometime during the year.…

A: Formula : Test statistic

Q: The editor of a magazine knows that 41.1% of all people who subscribe to the magazine do not renew…

Q: In one study of smokers who tried to quit smoking with nicotine patch therapy, 38 were smoking one…

A: Total sample size, n = 38 + 34 = 72 Smokers who tried to quit smoking with nicotine patch therapy,…

Q: Consider a professional baseball position player who has played 82 games or more (which is more than…

A: Hello there! there are more than three sub -parts in the given question. According to our policies…

Q: 6.15 Browsing on the mobile device: A 2012 survey of 2,254 American adults indicates that 17% of…

A: n=2254, p^=0.17 , p=0.38

Q: You read an online article that claims that 62% of 8-year-olds have social media accounts. You want…

A: Solution: From the given information, the probability of 8-year-olds have social media accounts is…

Q: freshmen business majors? 366 of the 673 freshmen psychology majors from a recent study changed…

A: From the given information we conduct z test for two proprtion.

Q: 1. does the data satisfy the assumptions of ANOVA? 2. Write the null and alternative hypothesis of…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: In the past, 28% of a country club's members brought guests to play golf sometime during the year.…

A: Given: N=28 X=87

Q: A researcher randomly assigns participants to receive either a vaccine or a placebo, and number of…

A: Statistics is an essential branch of mathematics that plays a vital role in various fields,…

Q: In the past, 30% of a country club's members brought guests to play golf sometime during the year.…

A: We have to find pvalue.

Q: A researcher wants to know whether athletic men are more flexible than nonathletic men. For this…

A: The given sample size for athletic men is 50, sample mean is 4.3, sample standard deviation is 2.1,…

Q: 2 In a certain normal distribution, 1,25%. öf the area lies to the left. of 42 and 1.25% lies to the…

A: Given, The distribution is normal. 1.25% of the area left to the 42 and 1.25 of the area right to…

Q: In a clinical trial, 23 out of 831 patients taking a prescription drug daily complained of flulike…

A: We want to test the hypothesis

Q: Which of the following statements, if any, are reasonable conclusions?

Q: A newsletter publisher believes that less than 36%36% of their readers own a laptop. For marketing…

A: The objective of the question is to interpret the results of a hypothesis test and draw a conclusion…

Q: A manufacturer claims him market share is 60%. However a random sample of 500 clients show that only…

A: X=275, n=500, p=60%, level of signicance=1%

Q: Whirling disease is a deadly disease that affects trout in Montana riversIn a follow-up to a 2006…

A: The relative risk of whirling disease for rainbow trout compared to brown trout can be calculated as…

Q: USA Today reported that about 47% of the general consumer population in the United States is loyal…

A: We have given that the hypothetical proportion p0=0.47, sample size 1002 and favourable cases X =…

Q: You conduct a one-way ANOVA with 3 groups and find a statistically significant result using a =…

A: For k no. of given conditions, the possible no. of distinct pairwise contrasts is: kC2. It is given…

Q: adults whether they believed that people should pay sales tax on items purchased over the internet.…

A: Let n denote the number of U.S. adults whether they believed that people should pay sales tax on…

Q: A certain HMO is attempting to show the benefits of managed care to an insurance company. The HMO…

A: The data on certification levels of doctors is provided.There are 3 levels of certification.Each…

Q: In the past, 30% of a country club's members brought guests to play golf sometime during the year.…

A: Consider that p is the true proportion of country club's members brought guests to play golf…

Q: A random sample of 400 residents are asked if they are in favor of the proposed 10% vanity tax that…

A: It is given that n=400 and x=300.

Question

What are the null and alternative hypotheses?

Using α=.05 , what is your conclusion?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Non-parametric Tests$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, probability and related others by exploring similar questions and additional content below.

Similar questions

Are freshmen psychology majors just as likely to change their major before they graduate compared to freshmen business majors? 366 of the 673 freshmen psychology majors from a recent study changed their major before they graduated and 394 of the 705 freshmen business majors changed their major before they graduated. What can be concluded at the a = 0.10 level of significance? For this study, we should use z-test for the difference between two population proportions a. The null and alternative hypotheses would be: Ho: p1 p2 v (please enter a decimal) H1: p1 p2 (Please enter a decimal) b. The test statistic z v -0.508 X (please show your answer to 3 decimal places.) c. The p-value = 0.6115 X (Please show your answer to 4 decimal places.) d. The p-value is > vV a e. Based on this, we should fail to reject the null hypothesis. f. Thus, the final conclusion is that ... O The results are statistically significant at a = 0.10, so there is sufficient evidence to conclude that the proportion of…
A new drug is tested in two peer-reviewed studies, A and B. Both studies provide evidence that the new drug is an improvement (The null hypothesis, that the new drug does not help, is rejected). But the researchers who conducted study A report a p-value of 8.2%, the team from study B obtained a p-value of only 2.3%. Which study provides the stronger evidence in favor of the new drug? Choose the most appropriate answer. a. Study B, because follow-up studies usually provide stronger evidence. b. Study A, because their p-value is bigger. c. Study A, because it was done by real researchers, and B only by a 'team'. d. Study B, because their p-value is smaller. e. The evidence from both studies is too weak.
Researchers investigate how the presence of cell phones influence the quality of human interaction. Subjects are randomly selected from a population and divided into an experimental group that is asked to leave their phones in the front of the room and a control group that are not asked to leave their cell phones at the front of the room. Subjects are left alone for 10 minutes and then asked to take a survey designed to measure quality of interactions they had with others in the experiment. What statistical test is appropriate?
When neither the subject nor those having contact with the subject know the treatment assignment, the study is called unbiased. double-blind. blind. statistically significant. randomized.
A newsletter publisher believes that less than 36%36% of their readers own a laptop. For marketing purposes, a potential advertiser wants to confirm this claim. After performing a test at the 0.010.01 level of significance, the advertiser failed to reject the null hypothesis. What is the conclusion regarding the publisher's claim?
Acne is a common skin disease that affects most adolescents and can continue into adulthood. A study compared the effectiveness of three acne treatments and a placebo, all in gel form, applied twice daily for 12 weeks. The study's 517 teenage volunteers were randomly assigned to one of the four treatments. Success was assessed as clear or almost clear skin at the end of the 12 week period. The results of the study can be seen in the table below. Using the appropriate statistical test, determine if there is significant evidence that the four treatments perform differently. If so, how do they compare.
A manufacturer of laptop computers claims that only 1% of their computers are defective. In a sample of 600 computers, it was found that 3% were defective. If the proportion of defectives were really only 1%, there would be than 1 chance in 1000 of getting such a large proportion of defective laptops in the sample. Is there statistically significant evidence against the manufacturer's claim? Why or Why not?
USA Today reported that about 47% of the general consumer population in the United States is loyal to the automobile manufacturer of their choice. Suppose Chevrolet did a study of a random sample of 1007 Chevrolet owners and found that 482 said they would buy another Chevrolet. Does this indicate that the population proportion of consumers loyal Chevrolet is more than 47%? Use a = 0.01. (a) What is the level of significance? State the null and alternate hypotheses. O Ho: P = 0.47; H,: p 0.47 O Ho: p > 0.47; H,: p = 0.47 O Ho: p = 0.47; H1: p + 0.47 (b) What sampling distribution will you use? O The Student's t, since np 5 and ng > 5. O The standard normal, since np 5 and ng > 5. What is the value of the sample test statistic? (Round your answer to two decimal places.) (c) Find the P-value of the test statistic. (Round your answer to four decimal places.) Sketch the sampling distribution and show the area corresponding to the P-value.
A mobile game currently has 38% of the market share. The CEO of the company producing the game recently authorized an advertising campaign with the goal of increasing the game's market share. A random sample of 1041 mobile gamers found that 409 gamers played the game at least once a day. A .Setup the null and alternative hypotheses to see if there is a significant change in the market share of the game. B. Determine if you can use a normal model to approximate the distribution of sample proportions. C. Find the critical value for a level of significance of 0.03. D. Find the standardized test statistic. E. State the conclusion of the hypothesis test.
Spam: A researcher reported that 71.8 % of all email sent in a recent month was spam. A system manager at a large corporation believes that the percentage at his company may be 69%. He examines a random sample of 500 emails received at an email server, and finds that 365 of the messages are spam. Can you conclude that greater than 69% of emails are spam? Use both a=0.01 and a= 0.05 levels of significance and the critical value method with the table. Part 1 of 5 State the appropriate null and alternate hypotheses. Ho: P- .69 H1: p> .69 This hypothesis test is a right-tailed V test. Part 2 of 5 Find the critical values. Round the answers to three decimal places. For a=0.01 , the critical value is 2.326 For a=0.05 , the critical value is 1.645 Part: 2/5 Part 3 of 5 Compute the test statistic. Do not round intermediate calculations. Round the answer to two decimal places.
Researchers examine the association between the fluoridation of water and the prevention of tooth decay by comparing the prevalence of tooth decay in countries that have fluoridated water with the prevalence in countries that do not. Is this a randomized experiment or an observational study? Assume that tooth decay was seen to be less common in countries with fluoridated water. Could this result be due to confounding?
What is the power of a study using a correlation, with a one-tailed test at the .05 significance level, in which the researchers predict a large effect size and there are 50 participants? How many participants do you need for 80% power in a planned study in which you predict a small effect size and will be using a correlation, one-tailed, at the .05 significance level?