User Account

All Pages

Volatility of the investment

Assignment Help Basic Statistics
Reference no: EM131087372

An investor is trying to decide whether to invest in a given stock, but is worried about the volatility of the investment. If the investor is very certain that the volatility (as measured by the standard deviation) is greater than 16% then the investor will choose a different investment option. In a sample of the previous 81 days reveals that the standard deviation of the investment is 20%. When testing the hypothesis (at the 1% level of significance) that the standard deviation is higher than 16%, what is the test statistic? (be careful on this) (please round your answer to 2 decimal places)

Reference no: EM131087372

Questions Cloud

What consistency model would be implemented : what consistency model would be implemented?
Analyzes the story of ivan illych : Refer to The Death of Ivan Ilych by Tolstoy. Write a 750-1,000 word paper that analyzes the story of Ivan Illych in terms of concepts of the "healing environment" found in chapter 7-9 of Called to Care: A Christian Worldview for Nursing.
Proportions between the two universities : When testing (at the 5% level of significance) whether the proportions between the two universities are different, what is the critical value? (please round your answer to 3 decimal places)
Ecology of the red-eyed vireo and associated foliage : The article "Feeding Ecology of the Red-Eyed Vireo and Associated Foliage-Gleaning Birds" (Ecological Monographs, 1971: 129-152) presents the accompanying data on the variable X = the number of hops before the first flight and preceded by a fligh..
Volatility of the investment : An investor is trying to decide whether to invest in a given stock, but is worried about the volatility of the investment. If the investor is very certain that the volatility (as measured by the standard deviation)
Hybrid dysgenesis in drosophila melanogaster : A study of sterility in the fruit fly ("Hybrid Dysgenesis in Drosophila melanogaster: The Biology of Female and Male Sterility," Genetics, 1979: 161-174) reports the following data on the number of ovaries developed by each female fly in a sample ..
Collaborating with other organizations : In a study of 368 San Francisco Bay Area nonprofits, 224 reported that they are collaborating with other organizations to provide services, a necessity as nonprofit agencies are called upon to do more with less.
Population standard deviation : If the manager of a paint supply store wants to estimate, with 95% confidence, the mean life of light bulbs to within +/-20 hours and also assumes that the population standard deviation is 100 hours, how many light bulbs need to be selected?
Describe how they solve the problem : Describe how they solve the problem.

Reviews

Write a Review

Basic Statistics Questions & Answers

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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