Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) provides a good barometer of

Question:

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 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 traded on the New York Stock Exchange (NYSE) went up the same day.
a. Formulate null and alternative hypotheses to test the analyst's claim.
b. A sample of 50 traded on the NYSE that day showed that 24 went up. What is your point estimate of the population proportion of that went up?
c. Conduct your hypothesis test using α = .01 as the level of significance. What is your conclusion? Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...