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...

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.


Asample of 64 stocks traded on the NYSE that day showed that 12 went up.


You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3.
You use a significance level of α=.10


a.) The sample proportion ˆp=    (write as a fraction)


b.) What is the test statistic for this sample? (Report answer accurate to 2 decimal places.)
test statistic =


c.) What is the p-value for this sample? (Report answer accurate to 4 decimal places.)
p-value =