In: Statistics and Probability
Using the entire data set of 65 stocks, count up the number of
stocks in your...
- 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.
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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
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- 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!
- 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:
- Give the rejection region for this test (you choose an
acceptable level for a).
- In the words of the problem, give a practical conclusion for
this test. Make sure to include your choice of α in this
conclusion.