Question

NASDAQ An analyst is trying to determine whether the prices of certain stocks on the NASDAQ are independent of the industry to which they belong. She examines four industries and, classifies the stock prices in these industries into one of three categories (high-priced, average-priced, low-priced).

Stock Price	Industry
	I	II	III	IV
High	25	12	19	24
Average	33	18	17	15
Low	10	8	5	9

a. Choose the competing hypotheses to determine whether stock price depends on the industry. H0: Stock price is dependent on the industry.; HA: Stock price is independent on the industry. H0: Stock price is independent of the industry.; HA: Stock price is dependent on the industry.

b-1. Calculate the value of the test statistic. (Round intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.)

b-2. Find the p-value. p-value < 0.01 0.01 p-value < 0.025 0.025 p-value < 0.05 0.05 p-value < 0.10 p-value 0.10

c. At a 1% significance level, what can the analyst conclude? Do not reject H0; there is not enough evidence to support the claim that the stock price is dependent on the industry. Reject H0; there is enough evidence to support the claim that the stock price is dependent on the industry. Reject H0; there is not enough evidence to support the claim that the stock price is dependent on the industry. Do not reject H0; there is enough evidence to support the claim that the stock price is dependent on the industry.

Answer 1

H0: Stock price is independent of the industry.;

HA: Stock price is dependent on the industry.

Test statistics = 5.805

P-value > 0.10

Do not reject H0; there is not enough evidence to support the claim that the stock price is dependent on the industry.