Wall Street traders are anxiously waiting for the federal government’s release of the August numbers for...

Wall Street traders are anxiously waiting for the federal government’s release of the August numbers for nonfarm payrolls. Last year month of August showed an average of 120,000 new jobs with a standard deviation of 20,000. A sample of 100 nonfarm payrolls taken earlier in the week shows a sample mean of 117,000. Financial analysts often call such a sample mean the “whisper number”. Conduct a hypothesis test to determine whether the whisper number justifies a conclusion of a statistically significant change in the number of new jobs with respect to last year. Allow for 5% error in the test. The hypothesis setting for the test follows. H0 : µ = 120,000 Ha : µ ≠ 120,000 a. (5pt) Conduct hypothesis test using a critical-value approach. b. (3pt) Conduct a hypothesis test using a p-value approach. c. (3pt) According to the statistical analysis you have performed above, do you think the whisper number does justify a conclusion of a statistically significant change in the number of new jobs? WHY?

Solutions

Expert Solution

So,we can say that there is sufficient evidence to support the claim that there is significant change in the number of new jobs.

orchestra answered 1 year ago

Next > < Previous

Related Solutions

Wall Street traders use cause-and-effect relationships to profit from news announcements concerning important economic variables such...

Wall Street traders use cause-and-effect relationships to profit from news announcements concerning important economic variables such as the money supply. Economists called "Monetarists" have long argued that the primary long-run cause of inflation is excessive growth in the money stock. On the basis of this theory, Wall Street traders attempt to buy and sell stocks and bonds hoping to be the first to capitalize on news of changes in the money stock. To assess the evidence of this proposition, we...

In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank”) was signed into federal...

In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank”) was signed into federal law. Under this Act, whistleblowers that bring violations of securities & commodities law, or the Foreign Corrupt Practices Act (FCPA) to the attention of the proper government authorities are entitled to between 10% to 30% of any government recovery in excess of $1 million. Do you believe it is appropriate/ethical for the government to incentivize reporting fraud and other wrongdoings in return for a...

Describe the history and current issues facing Wall Street. What did you learn about Wall Street...

Describe the history and current issues facing Wall Street. What did you learn about Wall Street that surprised you? What questions do you still have?

What do you think of Wall Street (or any financial markets)? Do we need Wall Street?...

What do you think of Wall Street (or any financial markets)? Do we need Wall Street? Why or Why not? Do a bit of research on how the financial markets (in the US, or other countries of your interest) were affected by the Covid-19 since March until now. What is "The Paradox of Thrift"? How does that apply to our current situation?

If the goal of the federal government’s farm program is to raise the incomes of poor...

If the goal of the federal government’s farm program is to raise the incomes of poor family farmers, is the current system of price floors and subsidy payments based on the number of acres farmed a good way to reach the goal? Briefly explain. What other ways might the federal government attempt to reach its goals?

Phillip was waiting for a bus at a bus stop. Across the street and down the...

Phillip was waiting for a bus at a bus stop. Across the street and down the block, a mechanic negligently overinflated a tire he was intending to put onto Marsha’s pickup truck. The exploding tire injured Marsha and frightened a neighborhood dog, which ran down the street and knocked Phillip down, injuring his knee. Phillip sued the mechanic. In applying the Palsgraf v. Long Island Railroad Co. decision to this case, explain in detail why or why not the mechanic...

Describe the history and current issues facing Wall Street

The Wall Street Journal reported that 33% of taxpayers with adjusted gross incomes between $30,000 and $60,000 itemized deductions on their federal income tax return

The Wall Street Journal reported that 33% of taxpayers with adjusted gross incomes between $30,000 and $60,000 itemized deductions on their federal income tax return. The mean amount of deductions for this population of taxpayers was $17,190. Assume that the standard deviation is σ = $2,603. Use z-table. a. What is the probability that a sample of taxpayers from this income group who have itemized deductions will show a sample mean within $166 of the population mean for each of the...

The Wall Street Journal reports that 33% of taxpayers with adjusted gross incomes between $30,000 and $60,000 itemized deductions on their federal income tax return.

The Wall Street Journal reports that 33% of taxpayers with adjusted gross incomes between $30,000 and $60,000 itemized deductions on their federal income tax return. The mean amount of deductions for this population of taxpayers was $16,642. Assume the standard deviation is σ = $2,400. (a) What is the probability that a sample of taxpayers from this income group who have itemized deductions will show a sample mean within $200 of the population mean for each of the following...

The Australian federal government’s budget was in surplus by almost $20 billion in 2007/08 and in...

The Australian federal government’s budget was in surplus by almost $20 billion in 2007/08 and in deficit by over $54 billion in 2009/10. What does this information tell us about fiscal policy actions taken by the government during these years?

Subjects