Formulate null and alternative hypotheses to test analysts, Macroeconomics

Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) provides 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. Formulate null and alternative hypotheses to test the analysts claim.

b. A sample of 50 stocks traded on the NYSE that day showed that 24 went up. What is your point estimate of the population proportionof stocks that went up?

c. Conduct your hypothesis test using ? = :01 as the level of significance. What is your conclusion?

Posted Date: 4/1/2013 1:46:55 AM | Location : United States







Related Discussions:- Formulate null and alternative hypotheses to test analysts, Assignment Help, Ask Question on Formulate null and alternative hypotheses to test analysts, Get Answer, Expert's Help, Formulate null and alternative hypotheses to test analysts Discussions

Write discussion on Formulate null and alternative hypotheses to test analysts
Your posts are moderated
Related Questions
/* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-prior

In the view of above complications, there is a long-standing debate on whether the fiscal policy should be active or passive in nature. Note that in the Keynesian context; even a p

Use a diagram of the open economy model (e.g. fig 32.4 from the text) to illustrate and explain the effect of the following event on the market for loanable funds, the level of net

Write a 4-5 page paper, double-spaced, Arial 12pt font, 1 inch margins all around (top, bottom, left, and right) that addresses the following news event summarized below In a to

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months), gender (0 = female, 1 = male) an

As is the case with the supply and demand function for a single business firm determining the equilibrium price and output for its product, the aggregate supply and aggregate deman

what is credit multiplir and how does it work

Question 1: Consider a two-period, two-person pure exchange economy. Utility functions and endowments are given as follows. u1(x0; x1) = (x0x1)2 and e1 = (18; 4) u2(x0; x1) = ln x0

1) Why does the adoption of Keynesian economics come out of the Great Depression? 1) Why does the adoption of Keynesian economics come out of the Great Depression? 2) What will ha

An engineer who was in the business of customizing software for small construction companies repay a loan that she got 3 years ago at 7% per year simple interest. If the amount she