A stock market analyst notices that in a certain year, the

Chapter 5, Problem 16E

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QUESTION:

A stock market analyst notices that in a certain year, the price of IBM stock increased on 131 out of 252 trading days. Can these data be used to find a 95% confidence interval for the proportion of days thatIBM stock increases? Explain.

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QUESTION:

A stock market analyst notices that in a certain year, the price of IBM stock increased on 131 out of 252 trading days. Can these data be used to find a 95% confidence interval for the proportion of days thatIBM stock increases? Explain.

ANSWER:

Answer:

Step 1 of 3:

     Given, a stock market analyst notices that in a certain year, the price of IBM stock increased in 131 out of 252 trading days.

      Here n = 252, x = 131.


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