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 72 stocks traded on the NYSE that day showed that 24 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 = 0.10. 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 O 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. There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3. O 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 72 stocks traded on the NYSE that day showed that 24 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 = 0.10. 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 O 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. There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3. O 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.
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...
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Transcribed Image Text: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 72 stocks traded on the NYSE that day showed that 24 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 = 0.10.
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...
less than (or equal to) a
greater than a
This test statistic leads to a decision to...
O reject the null
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.
O 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.
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