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.For the goodness-of -fit test,the null and alternative hypotheses are:

Question

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.For the goodness-of -fit test,the null and alternative hypotheses are:

Quizplus · Accepted Answer

The null hypothesis is that the probability of the Dow Jones Industrial average going up is the same for each day of the week, while the alternative hypothesis is that the probability is not the same for each day of the week. Choice B correctly states these hypotheses.