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 51% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 72 stocks traded on the NYSE that day showed that 33 went up. You are conducting a study to see if the proportion of stocks that went up is significantly different from 51%. You use a significance level of α=0.10α=0.10.For this study, we should use The null and alternative hypotheses would be: H0H0: (please enter a decimal) H1H1: (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 αα Based on this, we should the null hypothesis. As such, the final conclusion is that ...The sample data suggest that the populaton proportion is significantly different from 51% at αα = 0.10, so there is sufficient evidence to conclude that the proportion of stocks that went up is different from 51%The sample data suggest that the population proportion is not significantly different from 51% at αα = 0.10, so there is not sufficient evidence to conclude that the proportion of stocks that went up is different from 51%.

Answered: Many investors and financial analysts…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Question

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 51% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 72 stocks traded on the NYSE that day showed that 33 went up. You are conducting a study to see if the proportion of stocks that went up is significantly different from 51%. You use a significance level of α=0.10α=0.10.

For this study, we should use

The null and alternative hypotheses would be:
  H0H0:            (please enter a decimal)
  H1H1:            (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 αα

Based on this, we should the null hypothesis.

As such, the final conclusion is that ...
- The sample data suggest that the populaton proportion is significantly different from 51% at αα = 0.10, so there is sufficient evidence to conclude that the proportion of stocks that went up is different from 51%
- The sample data suggest that the population proportion is not significantly different from 51% at αα = 0.10, so there is not sufficient evidence to conclude that the proportion of stocks that went up is different from 51%.

Expert Solution