An investor estimates that there is a 75 chance that a

Assignment Help Basic Statistics
Reference no: EM13371159

An investor estimates that there is a 75% chance that a particular mutual fund's price will increase to $100 per share over the next three weeks, based past data.

NARREND

     1. {Mutual Fund Price Narrative} Which approach was used to produce this figure?

     2. {Mutual Fund Price Narrative} Interpret the 75% probability.

3-4. The sample space of the toss of a balanced coin is S = {1, 2, 3, 4, 5, 6}. If the die is balanced, each simple event (outcome) has the same probability. Find the probability of the following events:

a.

Rolling an odd number

b.

Rolling a number less than or equal to 3

 

 

NARRBEGIN: Financial Consultants

Financial Consultants

A Financial Consultant has classified his clients according to their gender and the composition of their investment portfolio (primarily bonds, primarily stocks, or a balanced mix of bonds and stocks). The proportions of clients falling into the various categories are shown in the following table:

 

Portfolio Composition

Gender

Bonds

Stocks

Balanced

Male

0.18

0.20

0.25

Female

0.12

0.10

0.15

One client is selected at random, and two events A and B are defined as follows:

A: The client selected is male.

B: The client selected has a balanced portfolio.

NARREND

5. {Financial Consultants Narrative} Find the following probabilities:

a.

P(A)

 

 

6. {Financial Consultants Narrative} Express each of the following events in words:

a.

A or B

7. {Financial Consultants Narrative} Find P(A and B).

8. {Financial Consultants Narrative} Express each of the following probabilities in words:

a.

P(A|B)

Blackjack

The probability distribution of a random variable X is shown below, where X represents the amount of money (in $1,000s) gained or lost in a particular game of Blackjack.

x

-4

0

4

8

p(x)

0.15

0.25

0.20

0.40

NARREND

9. {Blackjack Narrative} Find the following probabilities:

a.

P(X£ 0)

10. {Blackjack Narrative} Find the following values, and indicate their units.

a.

E(X)

NARRBEGIN: Montana Highways

Montana Highways

A recent survey in Montana revealed that 60% of the vehicles traveling on highways, where speed limits are posted at 70 miles per hour, were exceeding the limit. Suppose you randomly record the speeds of ten vehicles traveling on US 131 where the speed limit is 70 miles per hour. Let X denote the number of vehicles that were exceeding the limit.

11. {Montana Highways Narrative} What is the distribution of X?

12. {Montana Highways Narrative} Find P(X = 10).

NARRBEGIN: Subway Waiting Time

Subway Waiting Time

At a subway station the waiting time for a subway is found to be uniformly distributed between 1 and 5 minutes.

13. {Subway Waiting Time Narrative} What is the probability density function for this uniform distribution?

14. {Subway Waiting Time Narrative} What is the probability of waiting no more than 3 minutes?

NARRBEGIN: Battery Life

NARRBEGIN: IT Graduates Salary

IT Graduates Salary

The recent average starting salary for new college graduates in IT systems is $47,500. Assume salaries are normally distributed with a standard deviation of $4,500.

NARREND

15. {IT Graduates Salary Narrative} Is this a continuous probability distribution or discrete probability distribution?

16. {IT Graduates Salary Narrative} What is the probability of a new graduate receiving a salary between $45,000 and $50,000?

17. {IT Graduates Salary Narrative} What is the probability of a new graduate getting a starting salary in excess of $55,000?

18. {IT Graduates Salary Narrative} What percent of starting salaries are no more than $42,250?

19. {IT Graduates Salary Narrative} What is the cutoff for the bottom 5% of the salaries?

20. {IT Graduates Salary Narrative} What is the cutoff for the top 3% of the salaries?

Reference no: EM13371159

Questions Cloud

Financing strategy for renewable energyassume the renewable : financing strategy for renewable energyassume the renewable energy project you studied in week 4 is projected to be
Powertool is the largest us manufacturer of industrial hand : powertool is the largest us manufacturer of industrial hand tools. its sales force is strong but clients have
Internal controlljb company a local distributor has asked : internal controlljb company a local distributor has asked your accounting firm to evaluate their system of internal
A chemical company wished to study the consistency of the : a chemical company wished to study the consistency of the strength of one of its liquid chemical products. the product
An investor estimates that there is a 75 chance that a : an investor estimates that there is a 75 chance that a particular mutual funds price will increase to 100 per share
1 throughout history art has been used as propaganda to : 1. throughout history art has been used as propaganda to shape public opinion. propaganda takes many forms such as
As the owner of an independent firm you are looking to : as the owner of an independent firm you are looking to invest within the energy sector. you would like to purchase
Can a corporations annual profit be predicted from : can a corporations annual profit be predicted from information about the companys ceo? forbes may 1999 presented data
Problem 1 bob and bette rhymes with jetty each have : problem 1. bob and bette rhymes with jetty each have cobb-douglas preferences for cheese c and peanut butter p each of

Reviews

Write a Review

 

Basic Statistics Questions & Answers

  What is the expected value for the amount they will pay in

Refer to the article entitled 21st Birthday from the Penn State Pulse (January, 2001). Located in the Library Reserves--use the Library Reserves link in Angel.

  Find the equation of the regression line for given data

These data represent the ages of drivers and the number of accidents reported for each age group in Pennsylvania for a selected year. Find the equation of the regression line for the given data.

  Estimate level of significance and perform a one-tailed test

If 134 out of a random sample of 235 college students expressed an intent to vote, can we reject the aide's estimate at the 0.05 level of significance? Perform a one-tailed test.

  Least-squares line on scatter diagram

Graph the least-squares line on your scatter diagram. Be sure to use the point (x, y) as one of the points on the line.

  Proportion of applicants that fail the test

As a condition of employment, Fashion Industries applicants must pass a drug test. Of the last 220 applicants 14 failed the test. Develop a 99 percent confidence interval for the proportion of applicants that fail the test.

  State the experimental and null hypotheses

Create an research question, and then state the experimental and null hypotheses. Then, explain why null and alternative hypotheses have to be mutually exclusive. Finally, discuss how Type I and Type II errors are related to your hypotheses.

  Estimating population proportions-tv

A random sample of n=31 households is asked the number of TV sets in the household. The responses are-What is the mean number of TVs?

  1makers of generic drugs are required to demonstrate that

1.makers of generic drugs are required to demonstrate that their generic drug does not differ significantly from the

  Question on queuing analysis

In brief describe three situations in which the 'First In First Out' discipline rule is not applicable in queuing analysis. Provide examples of four situations in which there are limited, or finite population.

  Results of a regression analysis

A bank official reported the results of a regression analysis designed to predict the bank's charges (y), measured in dollars per month, for services rendered to local companies.

  Critical-value method to test significant difference means

What is the appropriate procedure to test a significant difference in means between the two groups? Use the critical-value method.

  How many elephants need to be weighed average

The population is 500 pounds. At a 80% level, how many elephants need to be weighed so the average weight will be accurate to within 350 pounds?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd