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 102 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 = 0.05. Price Change Today Up No Price Change Previous D Day Up No Change Down 13 14 13 7 Change Down 13 14 12 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 have equal proportions. HA: Today's price change and yesterday's price change have non-equal proportions. OC. 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. O D. 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. Calculate the test statistic. x2 = 1363 (Round to four decimal places as needed.) Calculate the p-value. p-value = .998 (Round to four decimal places as needed.) Determine a conclusion. Choose the correct answer below.
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 102 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 = 0.05. Price Change Today Up No Price Change Previous D Day Up No Change Down 13 14 13 7 Change Down 13 14 12 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 have equal proportions. HA: Today's price change and yesterday's price change have non-equal proportions. OC. 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. O D. 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. Calculate the test statistic. x2 = 1363 (Round to four decimal places as needed.) Calculate the p-value. p-value = .998 (Round to four decimal places as needed.) Determine a conclusion. Choose the correct answer below.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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 102 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 = 0.05.
Price Change Previous
Day
Up No Change Down
Price
Change
Today
Up
13
14
13
No
7
9
7
Change
Down
13
14
12
O D. 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.
Calculate the test statistic.
x2 =|.1363 (Round to four decimal places as needed.)
Calculate the p-value.
p-value = .998 (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. Do not reject Ho. There is insufficient evidence to conclude that today's price change and yesterday's price change are not independent.
OC. Reject Ho. There is sufficient evidence to conclude that today's price change and yesterday's price change are not independent.
O D. Reject Ho. There is insufficient evidence to conclude that today's price change and yesterday's price change are not independent.
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 102 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 = 0.05.
Price Change Previous D
Day
Up No Change Down
Price
Change
Today
Up
13
14
13
No
7
7
Change
Down
13
14
12
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 have equal proportions.
HA: Today's price change and yesterday's price change have non-equal proportions.
O C. 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.
O D. 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.
Calculate the test statistic.
x2 =|.1363 (Round to four decimal places as needed.)
Calculate the p-value.
p-value = .998 (Round to four decimal places as needed.)
Determine a conclusion. Choose the correct answer below.
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