MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) serves as a reliable indicator 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). Based on this observation, 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 77 stocks traded on the NYSE that day showed that 28 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 α = 0.02.

1. **What is the test statistic for this sample?** (Report answer accurate to three decimal places.)
   - Test statistic = [ ]

2. **What is the p-value for this sample?** (Report answer accurate to four decimal places.)
   - p-value = [ ]

3. **The p-value is...**
   - less than (or equal to) α
   - greater than α

4. **This p-value leads to a decision to...**
   - reject the null
   - accept the null
   - fail to reject the null

5. **As such, the final conclusion is that...**
   - There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3.
   - There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3.
   - The sample data support the claim that the proportion of stocks that went up is more than 0.3.
   - There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is more than 0.3.
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Transcribed Image Text:Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) serves as a reliable indicator 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). Based on this observation, 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 77 stocks traded on the NYSE that day showed that 28 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 α = 0.02. 1. **What is the test statistic for this sample?** (Report answer accurate to three decimal places.) - Test statistic = [ ] 2. **What is the p-value for this sample?** (Report answer accurate to four decimal places.) - p-value = [ ] 3. **The p-value is...** - less than (or equal to) α - greater than α 4. **This p-value leads to a decision to...** - reject the null - accept the null - fail to reject the null 5. **As such, the final conclusion is that...** - There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3. - There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3. - The sample data support the claim that the proportion of stocks that went up is more than 0.3. - There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is more than 0.3.
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