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 76% 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 62 went up. You are conducting a study to see if the proportion of stocks that went up is significantly different from 76%. You use a significance level of α=0.01. a. The test statistic = (please show your answer to 3 decimal places.) b. The p-value = (Please show your answer to 4 decimal places.)
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 76% 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 62 went up. You are conducting a study to see if the proportion of stocks that went up is significantly different from 76%. You use a significance level of α=0.01.
a. The test statistic = (please show your answer to 3 decimal places.)
b. The p-value = (Please show your answer to 4 decimal places.)
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