today's and yesterday's prices. Price changes werê ëxamined för 109 days. A fihancial theoly 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. Change Day Today Up No Change Down Up No Change 8 10 17 15 6. Down 14 14 16 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 have equal proportions. HA Today's price change and yesterday's price change have non-equal proportions. 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. O C. 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. O D. 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. Calculate the test statistic. x= (Round to four decimal places as needed.) Calculate the p-value. O-value =(Round to four decimal places as needed.) %3D

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today's and yesterday's prices. Price changes were examined for 109 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.
Change
Today
Day
Up No Change Down
Up
No Change 8
10
15
9.
Down
14
16
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 have equal proportions.
HA Today's price change and yesterday's price change have non-equal proportions.
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.
O C. 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.
O D. 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.
Calculate the test statistic.
x= (Round to four decimal places as needed.)
Calculate the p-value.
p-value =
(Round to four decimal places as needed.)
761
Transcribed Image Text:today's and yesterday's prices. Price changes were examined for 109 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. Change Today Day Up No Change Down Up No Change 8 10 15 9. Down 14 16 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 have equal proportions. HA Today's price change and yesterday's price change have non-equal proportions. 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. O C. 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. O D. 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. Calculate the test statistic. x= (Round to four decimal places as needed.) Calculate the p-value. p-value = (Round to four decimal places as needed.) 761
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 independe
O C. 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: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 independe O C. 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.
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