The table to the right classifies a stock's price change as up, down, or no change for both today's and yesterday's prices. Price changes were examined for 104 days. A financial theory states that the price change of today for a stock must be independent of yesterday's price change. Test the hypothesis that daily stock price changes for this stock are independent. Let a0. 10. Price Change Today Up No Change 7 Down Price Change Previous Day Up No Change Down 16 14 13 16 10 13 Determine the null and alternative hypotheses for the test. Choose the correct answer below. O A. Hoi Today's price change and yesterday's price change are not independent. HA Today's price change and yesterday's price change are independent. O B. Ho: Today's price change and yesterday's price change are independent. HA Today's price change and yesterday's price change are not independent. OC. Ho: Today's price change and yesterday's prioe change have non-equal proportions. HA Today's price change and yesterday's price change have equal proportions. OD. H: Today's price change and yesterday's price change have equal proportions. Ha: Today's price change and yesterday's price change have non-equal proportions. Calculate the test statistic. - (Round to four decimal places as needed.) Calculate the p-value. p-value - (Round to four decimal places as needed.) Determine a conclusion. Choose the correct answer below. O A Do not reject Ho. There is sufficient evidence to conclude that today's price change and yesterday's price change are not independent. O B. Reject Ho. There is sufficient evidence to conclude that today's price change and yesterday's price change are not independent. OC. Do not reject Ho. There is insufficient evidence to conclude that today's price change and yesterday's price change are not independent. D. Reject Ho. There is insufficient evidence to conclude that today's price change and yesterday's price change are not independent.
The table to the right classifies a stock's price change as up, down, or no change for both today's and yesterday's prices. Price changes were examined for 104 days. A financial theory states that the price change of today for a stock must be independent of yesterday's price change. Test the hypothesis that daily stock price changes for this stock are independent. Let a0. 10. Price Change Today Up No Change 7 Down Price Change Previous Day Up No Change Down 16 14 13 16 10 13 Determine the null and alternative hypotheses for the test. Choose the correct answer below. O A. Hoi Today's price change and yesterday's price change are not independent. HA Today's price change and yesterday's price change are independent. O B. Ho: Today's price change and yesterday's price change are independent. HA Today's price change and yesterday's price change are not independent. OC. Ho: Today's price change and yesterday's prioe change have non-equal proportions. HA Today's price change and yesterday's price change have equal proportions. OD. H: Today's price change and yesterday's price change have equal proportions. Ha: Today's price change and yesterday's price change have non-equal proportions. Calculate the test statistic. - (Round to four decimal places as needed.) Calculate the p-value. p-value - (Round to four decimal places as needed.) Determine a conclusion. Choose the correct answer below. O A Do not reject Ho. There is sufficient evidence to conclude that today's price change and yesterday's price change are not independent. O B. Reject Ho. There is sufficient evidence to conclude that today's price change and yesterday's price change are not independent. OC. Do not reject Ho. There is insufficient evidence to conclude that today's price change and yesterday's price change are not independent. D. Reject Ho. There is insufficient evidence to conclude that today's price change and yesterday's price change are not independent.
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter2: Functions
Section2.4: Average Rate Of Change Of A Function
Problem 33E: DVD Player sales The table shows the number of DVD play-ers sold in a small electronics store in the...
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Transcribed Image Text:The table to the right classifies a stock's price change as up, down, or no change for both
today's and yesterday's prices Price changes were examined for 104 days. A financial theory
states that the price change of today for a stock must be independent of yesterday's price
change. Test the hypothesis that daily stock price changes for this stock are independent. Let
a=0.10.
Price Change Previous
Day
Up No Change Down
16
Price
Change
Today
13
Up
No Change 7
Down
14
16
10
13
Determine the null and alternative hypotheses for the test. Choose the correct answer below.
O A. Ho: Today's price change and yesterday's price change are not independent.
HA: Today's price change and yesterday's price change are independent.
O B. Ho: Today's price change and yesterday's price change are independent.
HA: Today's price change and yesterday's price change are not independent.
OC. Ho: Today's price change and yesterday's price change have non-equal proportions.
HA: Today's price change and yesterday's price change have equal proportions.
OD. H: Today's price change and yesterday's price change have equal proportions.
Ha: Today's price change and yesterday's price change have non-equal proportions.
Calculate the test statistic.
2- (Round to four decimal places as needed.)
Calculate the p-value.
p-value - (Round to four decimal places as needed.)
Determine a conclusion. Choose the correct answer below.
O A. Do not reject H,. There is sufficient evidence to conclude that today's price change and yesterday's price change are not independent.
O B. Reject Ho. There is sufficient evidence to conclude that today's price change and yesterday's price change are not independent.
OC. Do not reject Ho. There is insufficient evidence to conclude that today's price change and yesterday's price change are not independent,
OD. Reject Ho- There is insufficient evidence to conclude that today's price change and yesterday's price change are not independent.
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