A Fund Manager Wants to Know If It Is Equally

question 94

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. Which of the following is the value of goodness-of-fit chi-square test statistic?

• A) 0.605
• B) 0.632
• C) 1.62
• D) 2.57

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Definitions:

Common Stock

Equity ownership in a corporation, representing a claim on its dividends and assets, typically granting voting rights.

Shares Outstanding

The total number of shares of a company that have been issued and are currently held by investors.

Stated Value

The nominal value assigned by a corporation to its issued shares, which might not reflect the market value but is used for internal accounting.

Paid-In Capital

The sum of money contributed by investors through the issuance of common or preferred stocks, counting both the share's nominal value and any excess over that nominal value.