Some financial theoreticians believe that the stock market's daily prices constitute a "random walk with positive drift." If this is accurate, then the Dow Jones Industrial Average should show a gain on more than 50% of all trading days. The average increased on 101 of 175 randomly chosen days. If 5%, what do you think about the suggested theory?
Select one:
A. Since the critical Z value is 1.645, we are going to reject the null hypothesis. At 5%, the data does not provide significant support for the theory.
B. Since the critical Z value is 1,645, we are going to reject the 5%, the data does provide significant support null hypothesis. Ata for the theory.
C. Since the critical Z value is 1.645, we are going to fail to reject t the null hypothesis. At 5% the data does not provide significant support .
D. Since the critical t value is 2.364, we are going to reject the null hypothesis. At 5%, the data does not provide significant support for the theory