Question
The accompanying table summarizes whether the stock market went up or down during each trading day of a certain year. Complete parts a through
The accompanying table summarizes whether the stock market went up or down during each trading day of a certain year. Complete parts a through c below. Click the icon to view the stock market direction table. Stock Market Direction (a) Use a chi-squared test to determine f these data indicate that trading on some days is better or worse (more or less likely to earn positive returns) than any other. State the null and alternative hypotheses for this test. A. Ho: Day of the week and market direction are dependent Ha Day of the week and market direction are independent OB. Ho: Day of the week and market direction are independent Ha: Day of the week and market direction are dependent C. Ho: Day of the week and market direction have equal proportions Ha Day of the week and market direction have non-equal proportions OD. Ho: Day of the week and market direction have a p-value = 0.05 Ha: Day of the week and market direction have a p-value = 0.05 Compute the chi-squared test statistic for the table. Market Direction Monday Tuesday Wednesday Thursday Friday Down Up 40 37 35 46 45 50 56 50 47 52 (Round to three decimal places as needed.) The p-value for testing Ho is . (Round to three decimal places as needed.) Draw a conclusion from this test, given a significance level of = 0.05. A. Reject Ho and conclude that day of the week and market direction are independent. B. Do not reject Ho and conclude that day of the week and market direction are independent. c. Do not reject Ho and conclude that day of the week and market direction are dependent or associated. D. Reject Ho and conclude that day of the week and market direction are dependent or associated. (b) How does the chi-squared test from part (a) differ from testing the proportion positive for each weekday with p = 0.5? A. The chi-squared test uses the chi-squared distribution. Proportion tests use the F-distribution. OB. The chi-squared test is used to determine whether a given model for the parameter fits the data. Testing the proportion only determines whether the day of the week is related to the proportion. C. The chi-squared test can only be used for categorical variables. Proportion tests cannot be used with categorical variables. OD. The chi-squared test is used to determine whether the day of the week is related to the proportion. Testing the proportion only determines whether a given model for the parameter fits the data. (c) These data only indicate the direction of the market. How does that limit the conclusions that can be drawn? A. No quantitative conclusions can be drawn about how much the market moved overall. O B. No conclusions can be drawn about whether the day of the week and market direction are independent. Print Done
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