barometer of the increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analys 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 25 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 = 0.10.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.2: Representing Data
Problem 22PFA
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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 77 stocks traded on the NYSE that day showed that 25 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 = 0.10.
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 =
The p-value is...
O less than (or equal to) a
O greater than a
This test statistic leads to a decision to...
O reject the null
O accept the null
O fail to reject the null
पीप
O
do in
%
M
31
6
4
DELL
02 N
Transcribed Image Text:Question 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 77 stocks traded on the NYSE that day showed that 25 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 = 0.10. 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 = The p-value is... O less than (or equal to) a O greater than a This test statistic leads to a decision to... O reject the null O accept the null O fail to reject the null पीप O do in % M 31 6 4 DELL 02 N
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