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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 states we can therefore assume that 30 of the stocks traded on the New York Stock Exchange NYSE went up the same day A sample of 54 stocks traded on the NYSE that day showed that 12 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 a 0 01 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 O less than or equal to a greater than a This test statistic and p value lead to a decision to Oreject the null O accept the null O fail to reject the null As such the final conclusion is that O 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 O The sample data support the claim that the proportion of stocks that went up is is less than 0 3

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