Question

In: Statistics and Probability

Using the entire data set of 65 stocks, count up the number of stocks in your...

  1. Using the entire data set of 65 stocks, count up the number of stocks in your data that have a high stock price that is at least $20. State this value here: ___28____. (is it)?

Verify this by copying the stem-and-leaf display for the high prices below.

Stem and Leaf Plot of high

Leaf Digit Unit = 10 Minimum 0.1100

4 3 represents 430     Median   26.400

                                                Maximum 430.80

Depth       Stem        Leaves

(46)           0           0000000000000000000111111111222222222333334444

   19            0           556667888

   10            1           00334

    5             1           567

    2             2           0

    1             2          

    1             3          

    1             3          

    1             4           3

65 cases included   0 missing cases  

  1. Suppose it is desired to determine if the true percentage of all stocks that have high prices that are at least $20 differs from 40%. Is the sample size large enough to conduct this test? Why or why not? Show your calculations for full credit!
  1. Use the table on the next page to locate the number of your stocks with high prices of at least $20 in your sample. Use the table to locate the Test Statistic that you should use for this test and write it here:

Test Statistic: 0.51

  1. Give the rejection region for this test (you choose an acceptable level for a).

  1. In the words of the problem, give a practical conclusion for this test. Make sure to include your choice of α in this conclusion.

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