Question

Google became a publicly traded company in August 2004. Initially, the stock traded over 10 million shares each day! Since the initial offering, the volume of stock traded daily has decreased substantially. In 2010, the mean daily volume in Google stock was 5.44 million shares, according to Yahoo!Finance. A random sample of 35 trading days in 2014 resulted in a sample mean of 3.28 million shares with a standard deviation of 1.68 million shares. Does the evidence suggest that the volume of Google stock has changed since 2007? Use a 0.05 level of significance.

State the null and alternative hypothesis.

What type of hypothesis test is to be used?

What distribution should be used and why?

Is this a right, left, or two-tailed test?

Compute the test statistic.

Compute the p-value.

Do you reject or not reject the null hypothesis? Explain why.

What do you conclude?

Answer 1