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 64 stocks traded on the NYSE that day showed that 9 went up. You are conducting a study to see if the proportion of stocks that went up is less than 0.3. You use a significance level of a = 0.005. What is the test statistic for this sample? (Report answer accurate to three decimal places.)

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
icon
Concept explainers
Question
100%

I only need help with the marked ones, thank you!

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 64 stocks traded on the NYSE that day showed that 9 went up.
You are conducting a study to see if the proportion of stocks that went up is less than 0.3. You use a
significance level of a = 0.005.
What is the test statistic for this sample? (Report answer accurate to three decimal places.)
test statistic =-2.78
What is the p-value for this sample? (Report answer accurate to four decimal places.)
p-value
| 0.027
The p-value is...
O less than (or equal to) a
Ogreater than a
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 64 stocks traded on the NYSE that day showed that 9 went up. You are conducting a study to see if the proportion of stocks that went up is less than 0.3. You use a significance level of a = 0.005. What is the test statistic for this sample? (Report answer accurate to three decimal places.) test statistic =-2.78 What is the p-value for this sample? (Report answer accurate to four decimal places.) p-value | 0.027 The p-value is... O less than (or equal to) a Ogreater than a
This test statistic leads to a decision to...
O reject the null hypothesis
O accept the null hypothesis
O fail to reject the null hypothesis
As such, the final conclusion is that...
O There is enough evidence to show rejection of the claim that the proportion of stocks that went up is
less than 0.3.
There is not enough evidence to show rejection of the claim that the proportion of stocks that went
up is less than 0.3.
There is enough evidence to show that the proportion of stocks that went up is less than 0,3.
There is not enough evidence to show that the proportion of stocks that went up is less than 0.3.
Transcribed Image Text:This test statistic leads to a decision to... O reject the null hypothesis O accept the null hypothesis O fail to reject the null hypothesis As such, the final conclusion is that... O There is enough evidence to show rejection of the claim that the proportion of stocks that went up is less than 0.3. There is not enough evidence to show rejection of the claim that the proportion of stocks that went up is less than 0.3. There is enough evidence to show that the proportion of stocks that went up is less than 0,3. There is not enough evidence to show that the proportion of stocks that went up is less than 0.3.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Points, Lines and Planes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman