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

Statistics for Engineers and Scientists | 4th Edition | ISBN: 9780073401331 | Authors: William Navidi

Problem 16E Chapter 5.2

Statistics for Engineers and Scientists | 4th Edition

  • 2901 Step-by-step solutions solved by professors and subject experts
  • Get 24/7 help from StudySoup virtual teaching assistants
Statistics for Engineers and Scientists | 4th Edition | ISBN: 9780073401331 | Authors: William Navidi

Statistics for Engineers and Scientists | 4th Edition

4 5 0 339 Reviews
16
4
Problem 16E

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 that IBM stock increases? Explain

Step-by-Step Solution:

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.

Step 2 of 3:

  The aim is to find a 95% confidence interval for the proportion of days that IBM stock increases.

      Then,

                       

                            = 252+ 4

                            = 256.

                     

                       

                     

                       =

                       = 0.5195

      A 95% confidence interval for p is given by

                          

 

         For a 95% confidence interval: 

     Z - value for 95% confidence interval is

        Then,

             

                                                       

                                               

                                                    = 0.51950.0612

                                                 

                                                        (0.4583, 0.5807)

Step 3 of 3

Chapter 5.2, Problem 16E is Solved
Textbook: Statistics for Engineers and Scientists
Edition: 4th
Author: William Navidi
ISBN: 9780073401331

This textbook survival guide was created for the textbook: Statistics for Engineers and Scientists , edition: 4th. The answer to “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 that IBM stock increases? Explain” is broken down into a number of easy to follow steps, and 44 words. Statistics for Engineers and Scientists was written by Patricia and is associated to the ISBN: 9780073401331. Since the solution to 16E from 5.2 chapter was answered, more than 397 students have viewed the full step-by-step answer. This full solution covers the following key subjects: stock, days, IBM, interval, explain. This expansive textbook survival guide covers 153 chapters, and 2440 solutions. The full step-by-step solution to problem: 16E from chapter: 5.2 was answered by Patricia, our top Statistics solution expert on 06/28/17, 11:15AM.

×
Log in to StudySoup
Get Full Access to Statistics For Engineers And Scientists - 4th Edition - Chapter 5.2 - Problem 16e

Forgot password? Reset password here

Join StudySoup for FREE
Get Full Access to Statistics For Engineers And Scientists - 4th Edition - Chapter 5.2 - Problem 16e
Join with Email
Already have an account? Login here
Reset your password

I don't want to reset my password

Need help? Contact support

Need an Account? Is not associated with an account
Sign up
We're here to help

Having trouble accessing your account? Let us help you, contact support at +1(510) 944-1054 or support@studysoup.com

Got it, thanks!
Password Reset Request Sent An email has been sent to the email address associated to your account. Follow the link in the email to reset your password. If you're having trouble finding our email please check your spam folder
Got it, thanks!
Already have an Account? Is already in use
Log in
Incorrect Password The password used to log in with this account is incorrect
Try Again

Forgot password? Reset it here