On an average day, about 5 percent of the stocks on the New York Stock Exchange set a new high for the year. On Friday, September 18, 1992, the Dow Jones Industrial Average closed at 3,282 on a robust volume of over 136 million shares traded. A random sample of 120 stocks showed that sixteen had set new annual highs that day. Using a significance level of 0.01, should we conclude that more stocks than usual set new highs on that day?
Contact us for the solution