Hypothesis Test for a Population Proportion
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 claims we can assume that $30\mathrm{\%}$ of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.
A sample of 58 stocks traded on the NYSE that day showed that 24 went up.
You are conducting a study to see if the proportion of stocks that went up is is significantly more than 0.3 . You use a significance level of $\alpha =0.01$.
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...
less than (or equal to) $\alpha$
greater than $\alpha$
$\mathrm{\infty }$
Type here to search