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In: Statistics and Probability

Question 5 A statistical analyst for the Wall Street Journal randomly selected six companies and recorded...

Question 5 A statistical analyst for the Wall Street Journal randomly selected six companies and recorded both the price per share of stock on January 1, 2009 and on April 30, 2009. The results are presented below. Suppose the analyst wished to see if the average price per share of stock on April 30, 2009 is greater than the average price per share of stock on January 1, 2009 at α=.05. Apr. 30, 2009 35 38 26 29 30 34 Jan. 1, 2009 28 30 27 24 30 20 For the hypothesis stated above, what is the P-value?

a. .975 < P-value < .99

b. None of the answers is correct

c. .01 < P-value < .025

d. .025 < P-value < .05

e. .05 < P-value < .10

Solutions

Expert Solution

Ho: Average price per share of stock on April 30, 2009 is equal to average price per share of stock on January 1, 2009

Ha: Average price per share of stock on April 30, 2009 is greater than Average price per share stocks on January 1, 2009.


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