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 64 stocks traded on the NYSE that day showed that 12 went up. You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of α=.10 a.) The sample proportion ˆp= (write as a fraction) b.) What is the test statistic for this sample? (Report answer accurate to 2 decimal places.) test statistic =
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 64 stocks traded on the NYSE that day showed that 12 went up.
You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of α=.10
a.) The sample proportion ˆp= (write as a fraction)
b.) What is the test statistic for this sample? (Report answer accurate to 2 decimal places.)
test statistic =
c.) What is the p-value for this sample? (Report answer accurate to 4 decimal places.)
p-value =
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
