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1. Suppose the annual return on XYZ stock follows a normal distribution with mean 0.12 and standard deviation 0.30.
a. What is the probability that XYZ's value will decrease during a year?
b. What is the probability that the return on XYZ during a year will be at least 20%?
c. What is the probability that the return on XYZ during a year will be between -6% and 9%?
d. There is a 5% chance that the return on XYZ during a year will be greater than what value?
e. There is a 1% chance that the return on XYZ during a year will be less than what value?
f. There is a 95% chance that the return on XYZ during a year will be between which two values (equidistant from the mean)?
In order not to violate the requirements necessary to use the chi-square distribution, each expected frequency in a goodness of fit test must be:
Construct a 95% confidence interval estimate of the population mean life of the light bulbs.
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