Final answer:
The implication of the question is that changes in earnings are correlated with changes in stock prices, which is generally true in finance as stock prices are influenced by earnings expectations. To determine the accuracy of this in specific circumstances, one would need to perform a hypothesis test comparing expected stock performance with actual data over a given period.
Step-by-step explanation:
The question asks whether the sign of the change in earnings, meaning an increase or decrease in earnings, was associated with a 10.0 percentage change in stock prices. This seems to be a claim from a research study which may not necessarily be true without additional context. To answer this, we need to examine the data or the specific study that makes this claim.
However, based on the general principles of finance and market expectations, an increase in a company's earnings generally leads to an increase in its stock price, while a decrease in earnings may lead to a fall in the stock price. This matches the provided information that expectations determine stock prices, and shifts in these expectations consequently lead to changes in stock prices. Still, predicting whether the stock price will perform well depends largely on whether a company is expected to do better in the future than what is currently anticipated (analysts' expectations).
The example provided in the question compares a theoretical growth rate of $5 per week with actual recorded changes in stock price over 10 weeks. To analyze this situation, one must perform a hypothesis test to determine if the actual growth rate differs significantly from the expected $5 per week. The provided numbers reflect variations in weekly growth which can be statistically analyzed to draw conclusions about market behavior.