Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2017, 9 of the 30 stocks making up the DJIA increased in price. On the basis of this fact, a financial analyst claims we can assume that 54% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 74 stocks traded on the NYSE that day
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2017, 9 of the 30 stocks making up the DJIA increased in price.
On the basis of this fact, a financial analyst claims we can assume that 54% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 74 stocks traded on the NYSE that day showed that 35 went up. You are conducting a study to see if the proportion of stocks that went up is significantly smaller than 54%. You use a significance level of α=0.05α=0.05.
how to you come up with the test statistic and p value using excel
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