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 58 stocks traded on the NYSE that day showed that 28 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 = 0.005. 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 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 As such, the final conclusion is that... O There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3. O There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3. The sample data support the claim that the proportion of stocks that went up is more than 0.3. O There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is more than 0.3.
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 58 stocks traded on the NYSE that day showed that 28 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 = 0.005. 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 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 As such, the final conclusion is that... O There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3. O There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3. The sample data support the claim that the proportion of stocks that went up is more than 0.3. O There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is more than 0.3.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 28PPS
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Transcribed Image Text: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 58 stocks traded on the NYSE that day showed that 28 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 = 0.005.
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
greater than a
This test statistic leads to a decision to...
O reject the null
accept the null
O fail to reject the null
As such, the final conclusion is that...
O There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went
up is more than 0.3.
There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that
went up is more than 0.3.
O The sample data support the claim that the proportion of stocks that went up is more than 0.3.
O There is not sufficient sample evidence to support the claim that the proportion of stocks that went
up is more than 0.3.
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