EBK BUSINESS STATISTICS
EBK BUSINESS STATISTICS
7th Edition
ISBN: 8220102743984
Author: STEPHAN
Publisher: PEARSON
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An entrepreneur owns 20 corporations, each with more than $10 million in assets. The entrepreneur consults the U. S. Internal Revenue Data Book and discovers that the IRS audits 20% of businesses of that size. On average how many of this entrepreneur's corporations do you expect will be audited. You can assume that all 20 corporations are independent. You do not need any knowledge about the IRS. Use probably and statistics.
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 76 stocks traded on the NYSE that day showed that 21 went up.You are conducting a study to see if the proportion of stocks that went up is significantly less than 0.3. You use a significance level of α=0.01α=0.01.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 =
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 76 stocks traded on the NYSE that day showed that 27 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 = 0.01. What is the test statistic for this sample? (Report answer accurate to three de ecimal places.) test statistic = 2.78 What is the p-value for this sample? (Report answer accurate to four decimal places.) p-value = 0.0054
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