Exhibit 12

question 39

Multiple Choice

Exhibit 12.3 A fund manager wants to know if it 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. Refer to Exhibit 12.3.Using the p-value approach and α = 0.05,the decision and conclusion are:

• A)Do not reject the null hypothesis,all of the proportions are the same
• B)Do not reject the null hypothesis,cannot conclude that not all of the proportions are the same
• C)Reject the null hypothesis,not all of the proportions are the same
• D)Reject the null hypothesis,all of the proportions are not the same

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Definitions:

Supply Equation

An economic formula that represents the relationship between the quantity of a good supplied by producers and the price of the good.

Price Floor

A minimum price set by the government for certain goods and services, intended to prevent prices from dropping too low.

Shortage/Surplus

A situation in the market where the amount of a product that consumers want to buy is greater than the amount available (resulting in a shortage), or the available amount is more than what consumers want to purchase (leading to a surplus).

Demand Equation

A formula that calculates the amount of a product consumers are willing to buy based on its price, income levels, and taste and preferences among other factors.