In: Math
Many investors and financial analysts believe the Dow Jones
Industrial Average (DJIA) gives a good barometer of the overall
stock market. On January 31, 2006, 9 of the 30 stocks making up the
DJIA increased in price (The Wall Street Journal, February 1,
2006). On the basis of this fact, a financial analyst claims we can
assume that 30% of the stocks traded on the New York Stock Exchange
(NYSE) went up the same day.
A sample of 79 stocks traded on the NYSE that day showed that 33
went up.
You are conducting a study to see if the proportion of stocks that
went up is is significantly more than 0.3. You use a significance
level of α=0.002.
What is the test statistic for this sample? (Report answer
accurate to three decimal places.)
test statistic =
What is the p-value for this sample? (Report answer accurate to
four decimal places.)
p-value =
The p-value is...
This test statistic leads to a decision to...
As such, the final conclusion is that...