9.5 Exercise 8

It is believed that a stock price for a particular company will grow at a rate of $5 per week with a standard deviation of $1. An investor believes the stock won’t grow as quickly. The changes in stock price are recorded for 10 weeks and are as follows: $4, $3, $2, $3, $1, $7, $2, $1, $1, $2. Perform a hypothesis test using a 5 percent level of significance. State the null and alternative hypotheses, find the p-value, state your conclusion, and identify the Type I and Type II errors.