Given information
An economist is deriving a model to predict outcomes on the stock market. He creates a list of expected points on the stock market index for the next two weeks. At the close of each day’s trading, he records the actual points on the index. He wants to see how well his model matched what actually happened.
Step-by-step explanation
As stated in the problem, the economist creates the list of expected points on the stock market index for the next two weeks coming up and also records the actual points at the end of each day’s trading.
In order to compare the actual points with the expected points so as to match the model he created. Therefore, in this study economists, can apply the goodness-of-fit test.
Hence, the goodness-of-fit test is the most appropriate test that can be applied in the given scenario.
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Introductory Statistics
Solutions
Chapter
Section
- Problem 1
- Problem 2
- Problem 3
- Problem 4
- Problem 5
- Problem 6
- Problem 7
- Problem 8
- Problem 9
- Problem 10
- Problem 11
- Problem 12
- Problem 12a
- Problem 13
- Problem 13
- Problem 14
- Problem 15
- Problem 16
- Problem 17
- Problem 18
- Problem 19
- Problem 20
- Problem 21
- Problem 22
- Problem 23
- Problem 24
- Problem 25
- Problem 26
- Problem 27
- Problem 28
- Problem 29
- Problem 30
- Problem 31
- Problem 32
- Problem 33
- Problem 34
- Problem 35
- Problem 36
- Problem 37
- Problem 38
- Problem 39
- Problem 40
- Problem 41a
- Problem 41b
- Problem 41c
- Problem 42a
- Problem 42b
- Problem 42c
- Problem 43
- Problem 44
- Problem 45
- Problem 46
- Problem 47
- Problem 48
- Problem 49
- Problem 50
- Problem 51
- Problem 52
- Problem 53
- Problem 54
- Problem 55
- Problem 56
- Problem 57
- Problem 58
- Problem 59
- Problem 60
- Problem 61
- Problem 62
- Problem 63
- Problem 64
- Problem 65
- Problem 66
- Problem 67
- Problem 68