SOLUTION: 13. Some financial theoreticians believe that the stock market's daily prices constitute a "random walk with positive drift." If this is accurate, then the Dow Jones Industrial Ave

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Question 634574: 13. Some financial theoreticians believe that the stock market's daily prices constitute a "random walk with positive drift." If this is accurate, then the Dow Jones Industrial Average should show a gain on more than 50% of all trading days. The average increased on 101 of 175 randomly chosen days. State the null and alternative hypothesis to verify the theory. Question 13 options:
Ho:P 0.5 and Ha: P > 0.50
Ho: 101 and Ha: > 101
Ho:P 0.5 and Ha: P < 0.50
Ho: 101 and Ha: < 101

Answer by ewatrrr(24785)   (Show Source): You can put this solution on YOUR website!
 
Hi,
Some financial theoreticians believe that the stock market's daily prices
constitute a "random walk with positive drift ( > 50%)
State the null and alternative hypothesis to verify the theory.
The idea is that Ho contains an = sign, ≤ may be used here
Ho: P ≤ 0.5
Ha: P > 0.50 claim
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