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Naked short selling" is a practice used by some stock market participants to drive down the price of specific stocks. An indication of a naked short selling attack against a company is that the daily trade volume suddenly becomes very large, sometimes so that the entire total number of outstanding shares is traded within a few days. AB&C is a bank that suspects it has recently been the target of a naked short selling attack. They suspect this because what seemed to be an unusual trading pattern in the last 12 trading days. Historically, the daily trading volume of their stock has had an average of 1.3 million shares and the probability distribution of the trading volume has closely followed a normal distribution. But, since September 12 (that is, the past 12 trading days), the average daily trading volume has been 2.2 million shares with a sample standard deviation of 0.8 million shares. You may assume that the shape of the distribution in the past 12 days is still normal. Let µ denote the population average trading volume, in millions of shares, for the period September 12 and beyond.
If p denotes the p-value of the corresponding hypothesis test, which of the following is true?
a) 0:00 < p < 0:01
b) 0:01 ≤ p < 0:05
c) 0:05 ≤ p < 0:10
d) 0:10 ≤ p < 1:00
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