6) 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...

6)

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% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.


A sample of 62 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 α=0.001α=0.001.


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...

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This test statistic leads to a decision to...

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As such, the final conclusion is that...

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