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 says that maybe we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. You have decided to do your own test. A sample of 78 stocks traded on the NYSE that day showed that 15 went up. You are going to complete your test to see if the proportion of stocks that went up is significantly less 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 says that maybe we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. You have decided to do your own test. A sample of 78 stocks traded on the NYSE that day showed that 15 went up. You are going to complete your test to see if the proportion of stocks that went up is significantly less 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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