from last Monday Tuesday and Wednesday with the aim of
Last updated: 6/6/2023
from last Monday Tuesday and Wednesday with the aim of testing whether price movements of stocks on a given day are influenced by movements in the prices on previous days The contingency table below displays some information for a random sample of 500 stocks The variables examined in the table are closing price movement from Monday to Tuesday closing price is up on Tuesday or closing price is not up on Tuesday and closing price movement from Tuesday to Wednesday closing price is up on Wednesday or closing price is not up on Wednesday Each cell of the table has three numbers the first number is the observed cell frequency o the second number is the expected cell frequency under the assumption that there is no association between the two variables closing price movement from Monday to Tuesday and closing price movement from Tuesday to Wednesday and the third number is the following value fo fE Observed cell frequency Expected cell frequency Expected cell frequency The numbers labeled Total are totals for observed frequency Part 1 Fill in the missing values in the contingency table Round your expected frequencies to two or more decimal places and round your fo JE values to three or more decimal places Send data to Excel Closing price movement from Monday to Tuesday Closing price up on Tuesday Closing price not up on Tuesday Total Closing price movement from Tuesday to Wednesday Closing price up on Wednesday 134 0 0 104 0 0 238 Closing price not up on Wednesday 128 0 0 134 a Determine the type of test statistic to use Type of test statistic Choose one 0 0 262 Total 262 238 500 Part 2 Answer the following to summarize the test of the hypothesis that there is no association between the two variables closing price movement from Monday to Tuesday and closing price movement from Tuesday to Wednesday For your test use the 0 05 level of significance b Find the value of the test statistic Round to two or more decimal places 0 c Find the critical value for a test at the 0 05 level of significance Round to two or more decimal places 0 X d Can we conclude that there is an association between the variables closing price movement from Monday to Tuesday and closing price movement from Tuesday to Wednesday Use the 0 05 level of X