Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives 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 sample of 72 stocks traded on the NYSE that day showed that 29 went up.
You are conducting a study to see if the proportion of stocks that went up is is significantly more than 0.3. You use a significance level of a = 0.02.
What is the test statistic for this sample?
Use p rounded to 4 decimal places. (Report answer accurate to 4
decimal places.)
test statistic =
What is the p-value for this sample? (Report answer accurate to 4 decimal places.)
p-value =
The p-value is either less than (or equal to) or
greater than?
This p-value leads to a decision to...
reject the null or accept the null or fail to reject the null?
As such, the final conclusion is that... (select a letter)
A) There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went
up is is more than 0.3.
B) There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that
went up is is more than 0.3.
C) There is sufficient evidence to support the claim that the proportion of stocks that went up is is more
than 0.3.
D) There is not sufficient sample evidence to support the claim that the proportion of stocks that went up
is is more than 0.3.
