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 52 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 significantly less than 0.3. You u
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 52 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 significantly less than 0.3. You use a significance level of α=0.001α=0.001.
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 =
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Calculus: Early Transcendentals](https://www.bartleby.com/isbn_cover_images/9781285741550/9781285741550_smallCoverImage.gif)
![Thomas' Calculus (14th Edition)](https://www.bartleby.com/isbn_cover_images/9780134438986/9780134438986_smallCoverImage.gif)
![Calculus: Early Transcendentals (3rd Edition)](https://www.bartleby.com/isbn_cover_images/9780134763644/9780134763644_smallCoverImage.gif)
![Calculus: Early Transcendentals](https://www.bartleby.com/isbn_cover_images/9781285741550/9781285741550_smallCoverImage.gif)
![Thomas' Calculus (14th Edition)](https://www.bartleby.com/isbn_cover_images/9780134438986/9780134438986_smallCoverImage.gif)
![Calculus: Early Transcendentals (3rd Edition)](https://www.bartleby.com/isbn_cover_images/9780134763644/9780134763644_smallCoverImage.gif)
![Calculus: Early Transcendentals](https://www.bartleby.com/isbn_cover_images/9781319050740/9781319050740_smallCoverImage.gif)
![Precalculus](https://www.bartleby.com/isbn_cover_images/9780135189405/9780135189405_smallCoverImage.gif)
![Calculus: Early Transcendental Functions](https://www.bartleby.com/isbn_cover_images/9781337552516/9781337552516_smallCoverImage.gif)