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 64 stocks traded on the NYSE that day showed that 9 went up. You are conducting a study to see if the proportion of stocks that went up is less 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.)

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Chapter10: Statistics
Section10.6: Summarizing Categorical Data
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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 64 stocks traded on the NYSE that day showed that 9 went up.
You are conducting a study to see if the proportion of stocks that went up is less 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 =-2.78
What is the p-value for this sample? (Report answer accurate to four decimal places.)
p-value
| 0.027
The p-value is...
O less than (or equal to) a
Ogreater than a
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 64 stocks traded on the NYSE that day showed that 9 went up. You are conducting a study to see if the proportion of stocks that went up is less 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 =-2.78 What is the p-value for this sample? (Report answer accurate to four decimal places.) p-value | 0.027 The p-value is... O less than (or equal to) a Ogreater than a
This test statistic leads to a decision to...
O reject the null hypothesis
O accept the null hypothesis
O fail to reject the null hypothesis
As such, the final conclusion is that...
O There is enough evidence to show rejection of the claim that the proportion of stocks that went up is
less than 0.3.
There is not enough evidence to show rejection of the claim that the proportion of stocks that went
up is less than 0.3.
There is enough evidence to show that the proportion of stocks that went up is less than 0,3.
There is not enough evidence to show that the proportion of stocks that went up is less than 0.3.
Transcribed Image Text:This test statistic leads to a decision to... O reject the null hypothesis O accept the null hypothesis O fail to reject the null hypothesis As such, the final conclusion is that... O There is enough evidence to show rejection of the claim that the proportion of stocks that went up is less than 0.3. There is not enough evidence to show rejection of the claim that the proportion of stocks that went up is less than 0.3. There is enough evidence to show that the proportion of stocks that went up is less than 0,3. There is not enough evidence to show that the proportion of stocks that went up is less than 0.3.
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