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.

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).
Industry
Stock Price I II
III IV
High 22 13 17
22
Average 16 14 16
26
Low 16 8 4 13
Click here for the Excel Data File
a. Choose the competing hypotheses to...

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, within each industry,
categorizes each stock according to its price (high-priced,
average-priced, low-priced).
Industry
Stock Price
I
II
III
IV
High
16
8
10
14
Average
18
16
10
12
Low
7
8
4
9
a. Choose the competing hypotheses to determine
whether stock price depends on the industry.
H0: Stock...

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).
Industry
Stock Price
I
II
III
IV
High
26
14
12
22
Average
30
28
19
14
Low
9
8
8
13
Click here...

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