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 61 stocks traded on the NYSE that day showed that 43 went up. You are conducting a study to see if the proportion of stocks that went up is significantlysmaller than 76%. You use a significance level of α=0.01α=0.01. For this study, we should use Select an answer 2-SampTInt 2-PropZInt 1-PropZInt T-Test χ²GOF-Test 2-SampTTest 2-PropZTest TInterval ANOVA 1-PropZTest χ²-Test The null and alternative hypotheses would be: H0H0: ? p μ Select an answer > = < ≠ (please enter a decimal) H1H1: ? p μ Select an answer ≠ = > < (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 Select an answer accept reject fail to reject the null hypothesis. As such, the final conclusion is that ... The sample data suggest that the populaton proportion is significantly smaller than 76% at αα = 0.01, so there is sufficient evidence to conclude that the proportion of stocks that went up is smaller than 76% The sample data suggest that the population proportion is not significantly smaller than 76% at αα= 0.01, so there is not sufficient evidence to conclude that the proportion of stocks that went up is smaller than 76%.

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

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

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 61 stocks traded on the NYSE that day showed that 43 went up. You are conducting a study to see if the proportion of stocks that went up is significantlysmaller than 76%. You use a significance level of α=0.01α=0.01.

For this study, we should use Select an answer 2-SampTInt 2-PropZInt 1-PropZInt T-Test χ²GOF-Test 2-SampTTest 2-PropZTest TInterval ANOVA 1-PropZTest χ²-Test

The null and alternative hypotheses would be:
  H0H0: ? p μ Select an answer > = < ≠ (please enter a decimal)
  H1H1: ? p μ Select an answer ≠ = > < (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 Select an answer accept reject fail to reject the null hypothesis.

As such, the final conclusion is that ...
- The sample data suggest that the populaton proportion is significantly smaller than 76% at αα = 0.01, so there is sufficient evidence to conclude that the proportion of stocks that went up is smaller than 76%
- The sample data suggest that the population proportion is not significantly smaller than 76% at αα= 0.01, so there is not sufficient evidence to conclude that the proportion of stocks that went up is smaller than 76%.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Data Collection, Sampling Methods, and Bias$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.

Recommended textbooks for you

Glencoe Algebra 1, Student Edition, 9780079039897…

Algebra

ISBN:

9780079039897

Author:

Carter

Publisher:

McGraw Hill