question archive Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) provides a good barometer of the overall stock market
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) provides a good barometer of the overall stock market
Subject:StatisticsPrice:2.86 Bought3
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) provides a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. a. Formulate null and alternative hypotheses to test the analyst's claim. Ho: p equal to .30 Ha: P not equal to .30 b. A sample of 50 stocks traded on the NYSE that day showed that 24 went up. What is your point estimate of the population proportion of stocks that went up (to 2 decimals)? 0.48 0 c. Conduct your hypothesis test using a = .02 as the level of significance. Calculate the value of the test statistic (to 2 decimals). 2.78 0 What is/are the critical value(s) (to 2 decimals)? + or - 2.77 Can you conclude that the proportion of stocks going up is not .30? Yes
