The euro-zone crisis continues to wreak havoc on U.S. stock markets (The Wall Street Journal, June 8,
Question:
The euro-zone crisis continues to wreak havoc on U.S. stock markets (The Wall Street Journal, June 8, 2012). A portfolio analyst wonders if the average trading volume on the Dow Jones Industrial Average (DJIA) has increased since the beginning of the year. She gathers data on daily trading volumes for a sample of 30 days. The data set, labeled DJIA_Volume, can be found on the text website.
a. She finds that the average trading volume in the beginning of the year was about 4,000 shares
(In millions). Specify the competing hypotheses to test her claim.
b. Specify the critical value(s) at the 5% significance level.
c. Compute the value of the test statistic.
d. At the 5% significance level, does it appear that trading volume has increased since the beginning of the year?
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
Step by Step Answer:
a H 0 4000 H A 4000 b With 005the critical value t df t 00529 1699 Excel command TIN...View the full answer
Essentials Of Business Statistics Communicating With Numbers
ISBN: 9780078020544
1st Edition
Authors: Sanjiv Jaggia, Alison Kelly
