Homework Help is Here – Start Your Trial Now!
Math
Statistics
According to the "random-walk model" for stock prices, the price movements of stocks on a given day are not influenced by movements in the prices on previous days. We've recorded closing price information for hundreds of NASDAQ stocks from last Monday, Tuesday, and Wednesday with the aim of testing this model. The contingency table below displays some information for a random sample of 500 stocks. The variables examined in the table are closing price movement from Monday to Tuesday ("closing price is up on Tuesday" or "closing price is not up on Tuesday") and closing price movement from Tuesday to Wednesday ("closing price is up on Wednesday" or "closing price is not up on Wednesday") Each cell of the table has three numbers: the first number is the observed cell frequency fo); the second umber is the expected cell frequency ( under the assumption that there is no association between the vo variables closing price movement from Monday to Tuesday and closing price movement from Tuesday to "ednesday; and the third number is the following value. fo-fE) (observed cell frequency - Expected cell frequency ) SE Expected cell frequency e numbers labeled "Total" are totals for observed frequency.

According to the "random-walk model" for stock prices, the price movements of stocks on a given day are not influenced by movements in the prices on previous days. We've recorded closing price information for hundreds of NASDAQ stocks from last Monday, Tuesday, and Wednesday with the aim of testing this model. The contingency table below displays some information for a random sample of 500 stocks. The variables examined in the table are closing price movement from Monday to Tuesday ("closing price is up on Tuesday" or "closing price is not up on Tuesday") and closing price movement from Tuesday to Wednesday ("closing price is up on Wednesday" or "closing price is not up on Wednesday") Each cell of the table has three numbers: the first number is the observed cell frequency fo); the second umber is the expected cell frequency ( under the assumption that there is no association between the vo variables closing price movement from Monday to Tuesday and closing price movement from Tuesday to "ednesday; and the third number is the following value. fo-fE) (observed cell frequency - Expected cell frequency ) SE Expected cell frequency e numbers labeled "Total" are totals for observed frequency.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section: Chapter Questions
Problem 13PT
See similar textbooks
icon
Related questions
Question
According to the "random-walk model" for stock prices, the price movements of stocks on a given day are not influenced by movements in the prices on previous days. We've recorded closing price information for hundreds of NASDAQ stocks from last Monday, Tuesday, and Wednesday with the aim of testing this model. The contingency table below displays some information for a random sample of 500 stocks. The variables examined in the table are closing price movement from Monday to Tuesday ("closing price is up on Tuesday" or "closing price is not up on Tuesday") and closing price movement from Tuesday to Wednesday ("closing price is up on Wednesday" or "closing price is not up on Wednesday") Español 4. Each cell of the table has three numbers: the first number is the observed cell frequency (fo); the second number is the expected cell frequency (f under the assumption that there is no association between the two variables closing price movement from Monday to Tuesday and closing price movement from Tuesday to Wednesday; and the third number is the following value. (Observed cell frequency Expected cell frequency ) SE Expected cell frequency The numbers labeled "Total" are totals for observed frequency. Part 1
Transcribed Image Text:According to the "random-walk model" for stock prices, the price movements of stocks on a given day are not influenced by movements in the prices on previous days. We've recorded closing price information for hundreds of NASDAQ stocks from last Monday, Tuesday, and Wednesday with the aim of testing this model. The contingency table below displays some information for a random sample of 500 stocks. The variables examined in the table are closing price movement from Monday to Tuesday ("closing price is up on Tuesday" or "closing price is not up on Tuesday") and closing price movement from Tuesday to Wednesday ("closing price is up on Wednesday" or "closing price is not up on Wednesday") Español 4. Each cell of the table has three numbers: the first number is the observed cell frequency (fo); the second number is the expected cell frequency (f under the assumption that there is no association between the two variables closing price movement from Monday to Tuesday and closing price movement from Tuesday to Wednesday; and the third number is the following value. (Observed cell frequency Expected cell frequency ) SE Expected cell frequency The numbers labeled "Total" are totals for observed frequency. Part 1
your expected frequencies to two or more decimal places, and round your values to three or more decimal places. Send data to Excel Closing price movement from Tuesday to Wednesday Closing price Closing price Total uo dn 3ou uo dn Wednesday Wednesday 141 Closing price up on Tuesday Closing price movement 92 131 from Monday to Tuesday Closing price not up on 223 Tuesday O O 228 Total 272 Part 2 Answer the following to summarize the test of the hypothesis that there is no association between the t variables closing price movement from Monday to Tuesday and closing price movement from Tuesday t Wednesday. For your test, use the 0.10 level of significance. (a) Determine the type of test statistic to use. Type of test statistic: (Choose one) ▼ (b) Find the value of the test statistic. (Round to two or more decimal places.) (c) Find the p-value. (Round to three or more decimal places.) d) Can we conclude that there is an association between the variables closing price movement from Monday to Tuesday and closing price movement from Tuesday to Wednesday? Use the 0.10 level of significance. O Yes O No
Transcribed Image Text:your expected frequencies to two or more decimal places, and round your values to three or more decimal places. Send data to Excel Closing price movement from Tuesday to Wednesday Closing price Closing price Total uo dn 3ou uo dn Wednesday Wednesday 141 Closing price up on Tuesday Closing price movement 92 131 from Monday to Tuesday Closing price not up on 223 Tuesday O O 228 Total 272 Part 2 Answer the following to summarize the test of the hypothesis that there is no association between the t variables closing price movement from Monday to Tuesday and closing price movement from Tuesday t Wednesday. For your test, use the 0.10 level of significance. (a) Determine the type of test statistic to use. Type of test statistic: (Choose one) ▼ (b) Find the value of the test statistic. (Round to two or more decimal places.) (c) Find the p-value. (Round to three or more decimal places.) d) Can we conclude that there is an association between the variables closing price movement from Monday to Tuesday and closing price movement from Tuesday to Wednesday? Use the 0.10 level of significance. O Yes O No
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
Holt Mcdougal Larson Pre-algebra: Student Edition…
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
SEE MORE TEXTBOOKS