Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2017, 9 of the 30 stocks making up the DJIA increased in price.On the basis of this fact, a financial analyst claims we can assume that 51% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 72 stocks traded on the NYSE that day showed that 33 went up. You are conducting a study to see if the proportion of stocks that went up is significantly different from 51%. You use a significance level of α=0.10α=0.10.For this study, we should use The null and alternative hypotheses would be: H0H0: (please enter a decimal) H1H1: (Please enter a decimal) The test statistic = (please show your answer to 3 decimal places.) The p-value = (Please show your answer to 4 decimal places.) The p-value is αα Based on this, we should the null hypothesis. As such, the final conclusion is that ...The sample data suggest that the populaton proportion is significantly different from 51% at αα = 0.10, so there is sufficient evidence to conclude that the proportion of stocks that went up is different from 51%The sample data suggest that the population proportion is not significantly different from 51% at αα = 0.10, so there is not sufficient evidence to conclude that the proportion of stocks that went up is different from 51%.

Answered: Many investors and financial analysts…

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.6: Summarizing Categorical Data

Problem 10CYU

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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, 2017, 9 of the 30 stocks making up the DJIA increased in price.
On the basis of this fact, a financial analyst claims we can assume that 51% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 72 stocks traded on the NYSE that day showed that 33 went up. You are conducting a study to see if the proportion of stocks that went up is significantly different from 51%. You use a significance level of α=0.10α=0.10.

For this study, we should use

The null and alternative hypotheses would be:
  H0H0:            (please enter a decimal)
  H1H1:            (Please enter a decimal)

The test statistic = (please show your answer to 3 decimal places.)

The p-value = (Please show your answer to 4 decimal places.)

The p-value is αα

Based on this, we should the null hypothesis.

As such, the final conclusion is that ...
- The sample data suggest that the populaton proportion is significantly different from 51% at αα = 0.10, so there is sufficient evidence to conclude that the proportion of stocks that went up is different from 51%
- The sample data suggest that the population proportion is not significantly different from 51% at αα = 0.10, so there is not sufficient evidence to conclude that the proportion of stocks that went up is different from 51%.

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