Basic Civil Engineering notes on Transportation Engineering & Modes of Transport
Data Project 1-use a significance level of 0.05Companies in the Do.pdf
1. Data Project 1-use a significance level of 0.05
Companies in the Dow Jones Industrial Average
Company
Price
Change
% Change
Volume
YTD
change
MMM 3M
141.26
+0.48
+0.34%
2,506,009
-14.03%
AXP American Express
75.50
+0.19
+0.25%
3,844,194
-18.85%
AAPL Apple
114.21
+1.64
+1.46%
49,915,473
+3.47%
BA Boeing
134.67
+1.12
+0.84%
2,628,223
+3.61%
CAT Caterpillar
72.63
6. +0.53
+0.75%
6,452,146
+7.95%
WMT Wal-Mart
64.65
+0.53
+0.83%
8,062,420
-24.72%
Data as of Sep 11
Gain or loss for each stock over the last quarter
Test the claim that the mean is the stocks broke even (no gain or loss indicates a mean of 0)
Company
Price
Change
% Change
Volume
YTD
change
MMM 3M
141.26
+0.48
+0.34%
2,506,009
-14.03%
AXP American Express
75.50
+0.19
+0.25%
3,844,194
-18.85%
AAPL Apple
114.21
+1.64
+1.46%
8. 9,529,778
+10.92%
DD E I du Pont de Nemours and Co
48.44
-0.18
-0.37%
6,499,111
-31.04%
XOM Exxon Mobil
72.69
+0.17
+0.23%
12,172,259
-21.37%
GE General Electric
24.95
+0.27
+1.09%
31,903,035
-1.27%
GS Goldman Sachs
185.27
-0.64
-0.34%
2,536,786
-4.42%
HD Home Depot
115.44
+0.95
+0.83%
4,472,836
+9.97%
IBM IBM
147.37
+1.17
+0.80%
11. 3,752,461
+17.42%
VZ Verizon
45.73
+0.27
+0.59%
11,227,446
-2.24%
V Visa
70.76
+0.53
+0.75%
6,452,146
+7.95%
WMT Wal-Mart
64.65
+0.53
+0.83%
8,062,420
-24.72%
Solution
Here we have given the data of companies in the Dow Jones Industrial Average.Gain or loss for
each stock over the last quarter.
We have to test the claim that, the mean is the stocks broke even.
Hypothesis for test is,
H0 : µ = 0 vs H1 : µ 0
This we can done by using EXCEL.
Here we use x variable as Company Price.
This is the data which have to test the hypothesis .
Here data is given to us population standard deviation is unknown and sample size n 30 so we
use here one sample t-test.
The t-statistic value for testing hypothesis is,
t = ( xbar - µ ) / (s/sqrt(n)) (sqrt(n) means square root of n)
This statistic follows t - distribution with n-1 degrees of freedom.
12. Where, xbar = sample mean.
n = sample size = 30
µ = Population mean
s = sample standard deviation
s / sqrt(n) = standard error or se
The EXCEL command for this testing is,
Enter the data in excel sheet
count(range of x) =This command will gives us number of observations in the sample.
average(range of x) = This command will gives us sample mean xbar.
stdev( range of x) = This command will gives us standard deviation of x.
standard error = stdev(range of x) / count(range of x)
hypothesis mean = 0
= 0.05 = level of significance.
tails = 2
degrees of freedom (d.f.) = n-1 =30-1 = 29
calculate t-statistics.
p-value = tdist(x, d.f. , tails) here x is the t-statistic value.
tinv(probability,d.f.) This will gives us critical value.
If we apply all these commands then we get the following output.
Here from this table ,
tstatistic = 11.222
tcritical = 2.045
p-value = 4.5257 * 10-12 = 0.0000
tstatistic > tcritical
Reject H0 at 5 % level of significance.
From p-value we can also conclude that H0 is rejected.
If p-value < (0.05)
then we reject H0 at 5% level of significance.
It means mean is differ from
0.nox1141.26275.53114.214134.67572.63675.79726.02838.139104.481048.441172.691224.951
3185.2714115.4415147.371629.471792.931862.561997.412052.092143.4822111.822332.97246
8.422599.492692.3327118.72845.732970.763064.65
