In January 2007, 9 of the 30 stocks making up the DJIA increased in price. On the basis of this fact, a financial analyst claims that we can assume that 30% of the stocks traded on the NY exchange went up on the same day.
a. Formulate null and alternative hypotheses to test the analyst's claim
b. A sample of 50 stocks traded on the NYSE that day showed that 24 went up. What is your point estimate of the population proportion of stocks that went up?
c. Conduct your hypothesis using a=.01 as the level of significance. what is your conclusion?