Stock market Some inves-tors believe that stock prices show weekly patterns, claim-ing for example that Fridays are more likely to be “up” days. From the trading ses-sions since October 1, 1928 we selected a random sampleof 1000 days on which the Dow Jones Industrial Aver-age (DJIA) showed a gain in stock prices. The table shows how many of these fell on each day of the week.Sure enough, more of them are Fridays—and Tuesday looks like a bad day to own stocks. Can this be ex-plained as just randomness, or is there evidence here to help an investor? Day ofthe WeekNumber of“up” DaysMon 192Tues 189Wed 202Thu 199Fri 218
Stock market Some inves-tors believe that stock prices show weekly patterns, claim-ing for example that Fridays are more likely to be “up” days. From the trading ses-sions since October 1, 1928 we selected a random sampleof 1000 days on which the Dow Jones Industrial Aver-age (DJIA) showed a gain in stock prices. The table shows how many of these fell on each day of the week.Sure enough, more of them are Fridays—and Tuesday looks like a bad day to own stocks. Can this be ex-plained as just randomness, or is there evidence here to help an investor? Day ofthe WeekNumber of“up” DaysMon 192Tues 189Wed 202Thu 199Fri 218
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.3: Simple Regression Models
Problem 9P
Related questions
Question
Stock market Some inves-
tors believe that stock prices
tors believe that stock prices
show weekly patterns, claim-
ing for example that Fridays
ing for example that Fridays
are more likely to be “up”
days. From the trading ses-
sions since October 1, 1928
sions since October 1, 1928
we selected a random sample
of 1000 days on which the
of 1000 days on which the
Dow Jones Industrial Aver-
age (DJIA) showed a gain in stock prices. The table
age (DJIA) showed a gain in stock prices. The table
shows how many of these fell on each day of the week.
Sure enough, more of them are Fridays—and Tuesday
Sure enough, more of them are Fridays—and Tuesday
looks like a bad day to own stocks. Can this be ex-
plained as just randomness, or is there evidence here to
plained as just randomness, or is there evidence here to
help an investor?
Day of
the Week
Number of
“up” Days
Mon 192
Tues 189
Wed 202
Thu 199
Fri 218
the Week
Number of
“up” Days
Mon 192
Tues 189
Wed 202
Thu 199
Fri 218
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,