Question

You are performing a rightfupper)-tailed test of a population mean and is not known. A sample of 26 is taken, and Pands are computed. At a signifiance of 0.01, where would you look for the critical value? Select one: O AZ table where the 0.99 of the area is to the left of the Z value. O B.Z table where 0.98 of the area is to the left of the Z value. O Cttable where, with 25 degrees of freedom, the column heading is 0.02 O D. t table where, with 25 degrees of freedom, the column heading is 0.01. Some financial theoreticians believe that the stock market's daily prices constitute a "random walk with positive drift." if this is accurate, then the Dow Jones Industrial Average should show a gain on more than 50% of all trading days. The average increased on 101 of 175 randomly chosen days. State the null and alternative hypothesis to verify the theory Select one: O A HP S 0.5 and H, P > 0.50 O B. He: S 101 and H > 101 O CHAP 2 0.5 and HP < 0.50 O D.Ho W2101 and H M < 101 Some fira

Answer 1

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here test is for population mean it is right tailed and f is unknown n=26 < 30. .: We have to use one sample t test for population mean here 2=0.0l degrees of freedom - n1=25 critical value=ta = tool, 25 I ta ::D). tatable with 25 degrees of freedom , the column heading is ool here belive is stock market's daily prices construite a random walk with positive drift je dow Jones industria average showd show gwn on more than 50% of all die trading day - which is tested in alternative hypothesis p = population proportion of days on which dow Jones industrial average shows gain The hypothesis are A) Hoi P<.0.5 and H,:P>0.5 A type II error is rejecting accepting Ho when it is false correct option is A) probability that null hypothesis is dejected when it is really take false