SOLUTION: 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 ma

Question 1147798: 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 54 stocks traded on the NYSE that day showed that 19 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
α=0.05
What is the test statistic for this sample? 4 decimal places
test statistic =
What is the p-value for this sample? 4 decimal places
p-value =
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
Ho p<=0.3
Ha p>0.3
alpha p=0.05 p{reject Ho|Ho true}
test stat is 1 sample proportion with z>(phat-p)/sqrt(p*(1-p)/n)
this is z> (0.352-0.3)/sqrt(0.3*0.7/54) round at end
z>0.052/0.0624 or 0.8315
p-value is 0.3519
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