Formulate null and alternative hypotheses to test analysts, Macroeconomics

Assignment Help:

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?


Related Discussions:- Formulate null and alternative hypotheses to test analysts

Classical quantity theories, Classical Quantity Theories Quantity theor...

Classical Quantity Theories Quantity theories have had a long history and a widespread use in economics. As originally formulated these were not explicitly designed as theories

Why economists use real gdp rather than nominal gdp, Explain why we cannot ...

Explain why we cannot measure the national product simply by adding up the production of all firms. Why do the economists use real GDP rather than nominal GDP to gauge economic

Unemployment, explain the phillips curve the relationship of inflation and ...

explain the phillips curve the relationship of inflation and unemployment

Difference between sampling error and standard error, Which is not true of ...

Which is not true of the difference between sampling error and standard error? a. Standard error is a difference from the population. b. Sampling error can't usually be calcula

Gross domestic product, In 1 to 2 sentences respond to the following commen...

In 1 to 2 sentences respond to the following comment. "Pollution restrictions will reduce gross domestic product and therefore hurt the economy."

What are the responsibilities of central banks, What are the Responsibiliti...

What are the Responsibilities of central banks Responsibilities include providing banking services to commercial banks and the government and regulating financial markets and i

Nash equilibrium or equilibria, Suppose A can somehow change the game in pr...

Suppose A can somehow change the game in problem 5.1 to a new one in which his payoff from Up is reduced by 2, producing the following payoff matrix. a. Find the Nash equilibriu

Homework Help, An unanticipated demand-pulled inflation would normally lead...

An unanticipated demand-pulled inflation would normally lead to all the following problems except?

Finding relate to economist''s traditional focus, Recently, a bank was tryi...

Recently, a bank was trying to decide what fee to charge for "expedited payments" - payments that the bank would transmit extra-speedily to enable customers to avoid late fees on c

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd