Stock Market: Testing for Randomness Above and below the median Listed below are the annual high poi
Question: Stock Market: Testing for Randomness Above and below the median Listed below are the annual high points of the Dow Jones Industrial Average for recent sequence of years. First find the median of the values, then replace each value by A if it is Above the median and B if it is below the median. Then apply the runs test to the resulting sequence of As and Bs. What does the result suggest about the stock market as an investment consideration?
969 | 995 | 943 | 985 | 969 | 842 | 951 | 1036 | 1052 | 892 |
882 | 1015 | 1000 | 908 | 898 | 1000 | 1024 | 1071 | 1287 | 1287 |
1553 | 1956 | 2722 | 2184 | 2791 | 3000 | 3169 | 3413 | 3794 | 3978 |
5216 | 6561 | 8259 | 9374 | 11,497 | 11,723 | 11,338 | 10,635 | 10,454 | 10,895 |
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Solution: The answer consists of 2 pages
Deliverables: Word Document
Deliverables: Word Document