Question

5. Apple Stock: The volume of a stock is the number of shares traded in the stock in a day. The mean volume of Apple stock in 2017 was 35.14 million shares. A stock analyst believes that the volume of Apple stock has increased since then. He randomly selects 40 trading days and determines the sample mean volume to be 41.06 million shares with sample std. deviation of 15.07 million shares. Test the stock analyst’s claim at the a = 0.10 level of significance using P-values & critical values.

Check Assumptions:
Ho:			Diagram:
H1:
Statistical Variables:
Test Statistic:			P-Value:
Conclusion and Interpretation:

Answer 1

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Answer:

H0: null hypothesis:Ho:μ <=35.14

H1: alternate hypothesis:Ha: μ >35.14

Statistical variables

xbar = 41.06

standard devaition = 15.07

std error of mean =std deviation/(n)^1/2 =15.07/(40)^1/2 =2.383

Test statistic:

z=(X-mean)/std error =(41.06-35.14)/2.383=2.484

P value:

p value =0.0065 from the z table

Decision rule:

As p value is lower then 0.05 level of significance  we reject null hypothesis and conclude that volume of apple stock has increased since then