A Fund Manager Wants to Know If It Is Equally

question 88

Multiple Choice

A fund manager wants to know if it is equally likely that the Dow Jones Industrial Average will go up each day of the week. For each day of the week, the fund manager observes the following number of days when the Dow Jones Industrial Average goes up. For the goodness-of-fit test, the null and alternative hypotheses are ________.

• A) H₀: p₁ = p₂ = p₃ = p₄ = 1/4, H_A: Not all population proportions are equal to 1/4
• B) H₀: p₁ = p₂ = p₃ = p₄ = p₅ = 1/5, H_A: Not all population proportions are equal to 1/5
• C) H₀: p₁ = p₂ = p₃ = p₄ = p₅ = 1/4, H_A: Not all population proportions are equal to 1/4
• D) H₀: p₁ = p₂ = p₃ = p₄ = 1/5, H_A: Not all population proportions are equal to 1/5

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Definitions:

Demand Curves

Graphical representations that show the relationship between the price of a good or service and the quantity demanded by consumers at various price levels.

Incumbent Firms

Established companies that currently dominate a sector or industry.

New Firms

Newly established business entities that often bring innovation, competition, and dynamism to their respective markets.

Long-Run Equilibrium

A state in which all factors of production and prices adjust fully to economic changes, with all markets clearing and no external pressures affecting supply and demand.