Many investors and financial analysts belleve 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 69 stocks traded on the NYSE that day showed that 11 went up.
You are conducting a study to see if the proportion of stocks that went up is significantly less than
0.3. You use a significance level of or = 0.01.
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...