The table to the right classifies a​ stock's price change as​ up, down, or no change for both​ today's and​ yesterday's prices. Price changes were examined for 108 days. A financial theory states that the price change of today for a stock must be independent of​ yesterday's price change. Test the hypothesis that daily stock price changes for this stock are independent. Let α=0.01. (data shown in image) Determine the null and alternative hypotheses Calculate the test statistic  Calculate the p-value  Reject or accept the null? What can be concluded about the daily stock price changes

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Confidence Intervals

When we calculate intervals in probability and statistics, it can be simply termed as finding out a confidence interval. The confidence interval is usually calculated from the data set which is observed. The value of the parameter that needs to be calculated is present here only.