document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1176454>Question 1176454</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 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.\r<BR>\n" );
document.write( "\n" );
document.write( "A sample of 57 stocks traded on the NYSE that day showed that 23 went up.\r<BR>\n" );
document.write( "\n" );
document.write( "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 0.01\r<BR>\n" );
document.write( "\n" );
document.write( "What is the test statistic for this sample? (Report answer accurate to three decimal places.) <BR>\n" );
document.write( "test statistic \r<BR>\n" );
document.write( "\n" );
document.write( "What is the p-value for this sample? (Report answer accurate to four decimal places.) <BR>\n" );
document.write( "p-value<BR>\n" );
document.write( " . </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #803577 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=803577\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the test statistic is (p hat-0.3)/sqrt (0.3*0.7/57) and is a z; p hat is 23/57=0.4035<BR>\n" );
document.write( "if z>2.326, then reject Ho<BR>\n" );
document.write( "test stat is z=(0.4035-0.30)/sqrt(0.21/57)<BR>\n" );
document.write( "=0.1035/0.0607<BR>\n" );
document.write( "=1.705<BR>\n" );
document.write( "p-value is z>1.705 with p-value of 0.0441, which is greater than 0.01<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );