Question
In: Statistics and Probability
The average daily volume of a computer stock in 2011 was h=35.1 million shares, according to...
The average daily volume of a computer stock in 2011 was h=35.1 million shares, according to a reliable source. A stock analyst believes that the stock volume in 2014 is different from the 2011 level. Based on a random sample of 40 trading days in 2014, he finds the sample mean to be 30.1 million shares, with a standard deviation of s=14.3 million shares. Test the hypotheses by constructing a 95% confidence interval. Complete parts (a) through (c) below.
Solutions
Expert Solution
| One-Sample t-test Confidence Interval |
|
The provided sample mean is Xˉ=30.1 and the sample standard
deviation is s=14.3. The size of the sample is n = 40 and the
required confidence level is 95%. Therefore, the 95% confidence interval for the population mean μ is 25.5266<μ<34.6734, which indicates that we are 95% confident that the true population proportion μ is contained by the interval (25.5266,34.6734) |
Since 35.1 is not contained in the above 95% confidence interval, we can say that there is sufficient evidence to support the hypothesis that the stock volume in 2014 is different from the 2011 level.
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orchestra answered 2 years agoRelated Solutions
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