Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of theoverall stock market. On January 31, 2006, 9 of the 30 stocks makıng up the DJIA increased in price (The Wall StreetJournal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stockstraded on the New York Stock Exchange (NYSE) went up the same dayA sample of 78 stocks traded on the NYSE that day showed that 21 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use asignificance level of a 0.001.What is the test statistic for this sample? (Report answer accurate to three decimal places.test statisticWhat is the p-value for this sample? (Report answer accurate to four decimal places.)19p-value =The p-value is..less than (or equal to) ogreater than aThis test statistic leads to a decision to...reject the nul1a

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Asked Nov 25, 2019
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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 makıng 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 78 stocks traded on the NYSE that day showed that 21 went up.
You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a
significance level of a 0.001.
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.)
19
p-value =
The p-value is..
less than (or equal to) o
greater than a
This test statistic leads to a decision to...
reject the nul1
a
help_outline

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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 makıng 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 78 stocks traded on the NYSE that day showed that 21 went up. You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of a 0.001. 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.) 19 p-value = The p-value is.. less than (or equal to) o greater than a This test statistic leads to a decision to... reject the nul1 a

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Expert Answer

Step 1

Given Data  and calcul...

21
x
n%3D 78, х%3 21, р
0.2692
78
п
p 0.30
Formulation of Hypotheses:
The null hypothesis is:
Ho p 0.30
The alternative hypothesis is:
Hi p 0.30
calculation of the test statistic
р —р
0.2692 0.30
-0. 594
Z=
0.30(1-0.30)
78
Р(1 - р)
n
Calculation of p-value
p-value 2 x P( Z
-0.594) = 2 X 0.2763 = 0.5526
P(Z-0.594)= 0.2763 ( From Excel NORM.S.DIST(-0.594,TRUE)
p-value is greater than a = 0.001
The test statistic leads to a decision to accept the null hypothesis
help_outline

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21 x n%3D 78, х%3 21, р 0.2692 78 п p 0.30 Formulation of Hypotheses: The null hypothesis is: Ho p 0.30 The alternative hypothesis is: Hi p 0.30 calculation of the test statistic р —р 0.2692 0.30 -0. 594 Z= 0.30(1-0.30) 78 Р(1 - р) n Calculation of p-value p-value 2 x P( Z -0.594) = 2 X 0.2763 = 0.5526 P(Z-0.594)= 0.2763 ( From Excel NORM.S.DIST(-0.594,TRUE) p-value is greater than a = 0.001 The test statistic leads to a decision to accept the null hypothesis

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