The Study
Sampling:
I obtained my data from Barchart.com. I choose Barchart because it had the most organized and detailed data I needed. I went to the 52 week high link every morning around 8 am to retrieve “yesterdays” data since the stock market doesn’t open till 9:30. I simply took the list of stocks from all exchanges (NYSE, AMEX, NASDAQ etc.) that had hit their 52 week high, copied and pasted it into a Microsoft excel sheet. I had relevant information such as the 52 week high price, the 52 week low, and the volume of shares. I was very satisfied with my sampling data as it made a complicated task easily completed.
5/6/2010
There were 198 stocks that hit their 52 week high on this day
The DOWIA was -347.8
5/7/2010
There were 38 stocks that hit their 52 week high on this day
Only 9 Stocks that hit their 52 week high yesterday hit their 52 week high again on this day
The DOWIA was
-139.89
5/10/2010
There were 103 stocks that hit their 52 week high on this day
8 stocks that hit their 52 week high yesterday, hit their 52 week high again on this day
The DOWIA was
404.71
5/11/2010
There were 138 stocks that hit their 52 week high on this day
22 stocks that hit their 52 week high yesterday hit their 52 week high again on this day
The DOWIA was
-36.88
5/12
There were 248 stocks that hit their 52 week high on this day
83 stocks that hit their 52 week high yesterday hit their 52 week high again on this day
The DOWIA was 154.76
Significance Test
Ho= Prop = .3
Ha= Prop < .3
Significance level .05
Assumptions:
N po > 10
N(1-
One proportion z test statistics:
| 5/6-5/7 | 5/7-5/10 | ||
| null ho=.3 | null ho=.3 | ||
| alt ha<.3 | alt ha<.3 | ||
| z=-7.816066737 | z=-1.203586 | ||
| p=0 | p=.11437 | ||
|
|
||
| Reject null | Fail to Reject Null | ||
| 5/10-5/11 | 5/11-5/12 | ||
| null ho=.3 | null ho=.3 | ||
| alt ha<.3 | alt ha<.3 | ||
| z=-1.91364663 | z=7.727 | ||
| p=.0278359 | p=1 | ||
|
|
||
| Reject null | Fail to Reject Null | ||
| TOTALS for all | |||
| NULL ho: Prop = .30 | |||
| ALT ha: Prop < .30 | |||
| Z= -2.108208783 | |||
| P= .0175064047 | |||
|
|||
| Reject Null | |||
Conclusion: see Conclusion page