Many economists and financial experts claim that the price level of a stock or bond is not random, but the price changes tend to follow a random sequence over time. The following data represent annual percentage returns on a stock index for a sequence of recent years. 12.6 10.8 −0.8 35.6 21.4 31.8 23.8 23.4 −10.4 −11.6 −21.6 10.6 Test the sequence for randomness about the median. Use ? = 0.05. (a)What is the level of significance? (b)Find the sample test statistic R, the number of runs (c)Find the upper and lower critical values in the critical values for number of runs R table.
Many economists and financial experts claim that the price level of a stock or bond is not random, but the price changes tend to follow a random sequence over time. The following data represent annual percentage returns on a stock index for a sequence of recent years. 12.6 10.8 −0.8 35.6 21.4 31.8 23.8 23.4 −10.4 −11.6 −21.6 10.6 Test the sequence for randomness about the median. Use ? = 0.05. (a)What is the level of significance? (b)Find the sample test statistic R, the number of runs (c)Find the upper and lower critical values in the critical values for number of runs R table.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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Many economists and financial experts claim that the price level of a stock or bond is not random, but the price changes tend to follow a random sequence over time. The following data represent annual percentage returns on a stock index for a sequence of recent years.
| 12.6 | 10.8 |
−0.8
|
35.6 | 21.4 | 31.8 | 23.8 | 23.4 |
−10.4
|
−11.6
|
−21.6
|
10.6 |
Test the sequence for randomness about the median. Use ? = 0.05.
(a)What is the level of significance?
(b)Find the sample test statistic R, the number of runs
(c)Find the upper and lower critical values in the critical values for number of runs R table.
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