1. So far there is no multilateral level investment agreement (MIA), despite attempts from OECD, UN, and other international institutions. What do you think are the key reasons for the failure of MIA?   Explain the major reasons (read Young and Tavares, 2004).

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 53 stocks traded on the NYSE that day showed that 21 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=0.005α=0.005.

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...

A) less than (or equal to) αα

B) greater than αα

This test statistic leads to a decision to...

A) reject the null

B)accept the null

C)fail to reject the null

As such, the final conclusion is that...

A) There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is is more than 0.3.

B) There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is is more than 0.3.

C) The sample data support the claim that the proportion of stocks that went up is is more than 0.3.

D) There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is is more than 0.3.

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 50 stocks traded on the NYSE that day showed that 5 went up.

You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of α=0.10α=0.10.

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...

• less than (or equal to) αα
• greater than αα

This test statistic leads to a decision to...

• reject the null
• accept the null
• fail to reject the null

As such, the final conclusion is that...

• There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is less than 0.3.
• There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is less than 0.3.
• The sample data support the claim that the proportion of stocks that went up is is less than 0.3.
• There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is less than 0.3.

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 66 stocks traded on the NYSE that day showed that 10 went up. You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of α = 0.001 α=0.001 . 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... less than (or equal to) α α greater than α α This test statistic leads to a decision to... reject the null accept the null fail to reject the null As such, the final conclusion is that... There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is is less than 0.3. There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is is less than 0.3. The sample data support the claim that the proportion of stocks that went up is is less than 0.3. There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is is less than 0.3.

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 69 stocks traded on the NYSE that day showed that 25 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 = 0.05 α = 0.05 .

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... less than (or equal to) α α greater than α α This test statistic leads to a decision to... reject the null accept the null fail to reject the null As such, the final conclusion is that... There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is is more than 0.3. There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is is more than 0.3. The sample data support the claim that the proportion of stocks that went up is is more than 0.3. There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is is more than 0.3.

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...

• less than (or equal to) αα
• greater than α

This test statistic leads to a decision to...

• reject the null
• accept the null
• do not reject the null

As such, the final conclusion is that...

• There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3.
• There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is more than 0.3.
• There is evidence to support the claim that the proportion of stocks that went up is more than 0.3.
• There is not evidence to support the claim that the proportion of stocks that went up is is more than 0.3.

The relationship between "strength" and "fineness" of cotton fibers was the subject of a study that produced the following data. (Give your answers correct to two decimal places.)

(a) Find the 98% confidence interval for the mean measurement of fineness for fibers with a strength of 76.

Upper Limit -

Lower Limit-

(b) Find the 99% prediction interval for an individual measurement of fineness for fibers with a strength of 76.

Upper Limit -

Lower Limit-

A study compared the individual pre-tax yearly income earned by residents from two states. The following table lists the statistics resulting from this study:

Calculate the upper and lower bound of the 95% confidence interval of the mean difference (State A - State B) between the income earned by individuals from the two states. Give your answers to 2 decimal places.

a)Lower bound =

b)Upper bound =

An environmentalist wants to determine the relationship between the number of fires, in thousands, and the number of acres burned, in hundreds of thousands. Based on this data, decide if the correlation is significant at alpha = 0.05. Number of fires x 73 74 58 48 80 65 54 49 Number of acres burned y 64 46 22 23 51 12 29 10

5. When x = 61 what is y and what does it mean I this context.

6. Determine r^2.

7. Determine Sset.

8. Find the 95% prediction interval when x = 61.

Suppose that the speed at which cars go on the freeway is normally distributed with mean 74 mph and standard deviation 5 miles per hour. Let X be the speed for a randomly selected car. Round all answers to 4 decimal places where possible.

a. What is the distribution of X? X ~ N(,)

b. If one car is randomly chosen, find the probability that it is traveling more than 73 mph.

c. If one of the cars is randomly chosen, find the probability that it is traveling between 77 and 80 mph.

d. 78% of all cars travel at least how fast on the freeway? mph.