# Question

An analyst is trying to determine whether the prices of certain stocks on the NASDAQ are independent of the industry to which they belong. She examines four industries and classifies the stock prices in these industries into one of three categories (high-priced, average-priced, low riced).

a. Specify the competing hypotheses to determine whether stock price depends on the industry.

b. Calculate the value of the test statistic. Approximate the p-value with the table or calculate its exact value with Excel.

c. At a 1% significance level, what can the analystconclude?

a. Specify the competing hypotheses to determine whether stock price depends on the industry.

b. Calculate the value of the test statistic. Approximate the p-value with the table or calculate its exact value with Excel.

c. At a 1% significance level, what can the analystconclude?

## Answer to relevant Questions

Many parents have turned to St. John’s Wort, a herbal remedy, to treat their children with attention deficit hyperactivity disorder (ADHD). The Journal of the American Medical Association (June 11, 2008) recently published ...Suppose you are conducting a test of independence. Specify the critical value under the following scenarios:a. r = 5, c = 2, and α = 0.025 .b. r = 3, c = 5, and α = 0.01 .A sample space, S, yields four simple events, A, B, C, and D, such that P(A) = 0.35 , P(B) = 0.10 and P(C ) = 0.25 .a. Find P(D) .b. Find P(Cc) .c. Find P(A ∪ B) .Let P (A) = 0.65, P (B) = 0.30, and P (A | B) = 0.45.a. Are A and B independent events? Explain.b. Are A and B mutually exclusive events? Explain.c. What is the probability that neither A nor B takes place?Dr. Miriam Johnson has been teaching accounting for over 20 years. From her experience she knows that 60% of her students do homework regularly. Moreover, 95% of the students who do their homework regularly generally pass ...Post your question

0