Many investors and financial analysts believe the Dow JonesIndustrial Average (DJIA) gives a good barometer of the overallstock market. On January 31, 2006, 9 of the 30 stocks making up theDJIA increased in price (The Wall Street Journal, February 1,2006). On the basis of this fact, a financial analyst claims we canassume 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 theNYSE that day showed that 25 went up. You are conducting a study tosee if the proportion of stocks that went up is is significantlymore than 0.3. You use a significance level of α = 0.05 α = 0.05.
What is the test statistic for this sample? (Report answeraccurate to three decimal places.) test statistic =
What is the p-value for this sample? (Report answer accurate tofour decimal places.)
p-value = The p-value is... less than (or equal to) α α greaterthan α α This test statistic leads to a decision to... reject thenull accept the null fail to reject the null As such, the finalconclusion is that... There is sufficient evidence to warrantrejection of the claim that the proportion of stocks that went upis is more than 0.3. There is not sufficient evidence to warrantrejection of the claim that the proportion of stocks that went upis is more than 0.3. The sample data support the claim that theproportion of stocks that went up is is more than 0.3. There is notsufficient sample evidence to support the claim that the proportionof stocks that went up is is more than 0.3.
