Question: The following table classifies a stocks price change as up, down, or no change for both todays and yesterdays prices. Price changes were examined for

The following table classifies a stock€™s price change as up, down, or no change for both today€™s and yesterday€™s prices. Price changes were examined for 100 days. A financial theory states that stock prices follow what is called a €œrandom walk.€ This means, in part, that the price change today for a stock must be independent of yesterday€™s price change. Test the hypothesis that daily stock price changes for this stock are independent. Let Î± = 0.05.

Price Change Previous Day Price Change Today Up No Change Down 14 16 12 Up No Change Down 14

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