Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2017, 9 of the 30 stocks making up the DJIA increased in price. On the basis of this fact, a financial analyst claims we can assume that 67% 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 45 went up. You are conducting a study to see if the proportion of stocks that went up is significantly different from 67%. You use a significance level of �=0.10. For this study, we should use The null and alternative hypotheses would be: �0: (please enter a decimal) �1: (Please enter a decimal) The test statistic = (please show your answer to 3 decimal places.) The p-value = (Please show your answer to 4 decimal places.) The p-value is � Based on this, we should the null hypothesis. As such, the final conclusion is that ... The sample data suggest that the population proportion is not significantly different from 67% at � = 0.10, so there is not sufficient evidence to conclude that the proportion of stocks that went up is different from 67%. The sample data suggest that the populaton proportion is significantly different from 67% at � = 0.10, so there is sufficient evidence to conclude that the proportion of stocks that went up is different from 67%

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

Question

100%

Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2017, 9 of the 30 stocks making up the DJIA increased in price.
On the basis of this fact, a financial analyst claims we can assume that 67% 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 45 went up. You are conducting a study to see if the proportion of stocks that went up is significantly different from 67%. You use a significance level of �=0.10.

For this study, we should use

The null and alternative hypotheses would be:
  �0:            (please enter a decimal)
  �1:            (Please enter a decimal)

The test statistic = (please show your answer to 3 decimal places.)

The p-value = (Please show your answer to 4 decimal places.)

The p-value is �

Based on this, we should the null hypothesis.

As such, the final conclusion is that ...
- The sample data suggest that the population proportion is not significantly different from 67% at � = 0.10, so there is not sufficient evidence to conclude that the proportion of stocks that went up is different from 67%.
- The sample data suggest that the populaton proportion is significantly different from 67% at � = 0.10, so there is sufficient evidence to conclude that the proportion of stocks that went up is different from 67%

Expert Solution

Step by step

Solved in 6 steps with 7 images

SEE SOLUTION Check out a sample Q&A here