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 58 stocks traded on the NYSE that day showed that 28 went up. You are conducting a study to see if the proportion of stocks that went up is significantly more than 0.3. You use a significance level of a = 0.005. 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... O less than (or equal to) a greater than a This test statistic leads to a decision to... O reject the null O accept the null O fail to reject the null As such, the final conclusion is that... O There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3. O There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3. The sample data support the claim that the proportion of stocks that went up is more than 0.3. O There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is more than 0.3.
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 58 stocks traded on the NYSE that day showed that 28 went up. You are conducting a study to see if the proportion of stocks that went up is significantly more than 0.3. You use a significance level of a = 0.005. 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... O less than (or equal to) a greater than a This test statistic leads to a decision to... O reject the null O accept the null O fail to reject the null As such, the final conclusion is that... O There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3. O There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3. The sample data support the claim that the proportion of stocks that went up is more than 0.3. O There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is more than 0.3.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Concept explainers
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Topic Video
Question
Transcribed Image Text:**Hypothesis Testing for Proportion of Stocks Increasing in Price**
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 58 stocks traded on the NYSE that day showed that 28 went up.
You are conducting a study to see if the proportion of stocks that went up is significantly more than 0.3. You use a significance level of \( \alpha = 0.005 \).
1. **What is the test statistic for this sample? (Report answer accurate to three decimal places.)**
- Test statistic = ____
2. **What is the p-value for this sample? (Report answer accurate to four decimal places.)**
- P-value = ____
3. **The p-value is...**
- ( ) less than (or equal to) \( \alpha \)
- ( ) greater than \( \alpha \)
4. **This test statistic leads to a decision to...**
- ( ) reject the null
- ( ) accept the null
- ( ) fail to reject the null
5. **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 more than 0.3.
- ( ) There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3.
- ( ) The sample data support the claim that the proportion of stocks that went up is more than 0.3.
- ( ) There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is more than 0.3.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
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
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
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
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
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
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman