Many investors and finacnial analysts think the Dow Jones Industrial Average provides good barometer of the entire stock market. On January 31,2006, 9 of the 30 stocks making up the DJIA raised in price. On the basis of the this face, a financial analyst claims we can suppose that 30% of the stocks traded upon the New York Sotck exchange went up the same day.
A. Formulate null and alternative hypothesis 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 test using a=.01 as the level of significance. what is you conclusion?