Question
Hi guys can you please help me with question 2 A young investor in the stock market is concerned that investing in the stock market
Hi guys can you please help me with question 2
A young investor in the stock market is concerned that investing in the stock market is actuallygambling, since the chance of the stock market going up on any given day is50%. She decides to track her favourite stock for 235 days and finds that on 139 days the stock was "up."
a) Test the appropriate hypothesis. Find a 90% confidence interval for the proportion of days the stock is "up." Check the conditions.
b) Does your confidence interval provide any evidence that the market is notrandom?
c) What is the significance level of thistest?
a) Let p be the proportion of days the stock is "up". What are the null and alternative hypotheses for thetest?
A.
H0: p=0.50 vs. HA: p0.50
Your answer is correct.
B.
H0: p=0.50 vs. HA: p>0.50
C.
H0: p=0.591 vs. HA: p<0.591
D.
H0: p=0.591 vs. HA: p0.591
Check the conditions. Which of the following conditions aresatisfied? Select all that apply.
A.
Less than10% of the population was sampled.
Your answer is correct.
B.
The sample is random.
Your answer is correct.
C.
There are more than 10 "successes" and 10 "failures."
Your answer is correct.
D.
The data are independent.
Your answer is correct.
b) Does your confidence interval provide any evidence that the market is notrandom?
Find a 90% confidence interval for the proportion of days the stock is "up." Select the correct choice below and fill in any answer boxes within your choice.
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