A European growth mutual fund specializes in stocks from the British Isles, continental Europe, and Scandinavia. The fund has over 225 stocks. Let x be a random variable that represents the monthly percentage return for this fund. Suppose x has mean ? = 1.4% and standard deviation ? = 1.5%. (a) After 9 months, what is the probability that the average monthly percentage return x will be between 1% and 2%? (Round your answer to four decimal places.) (b) After 18 months, what is the probability that the average monthly percentage return x will be between 1% and 2%? (Round your answer to four decimal places.) (c) If after 18 months the average monthly percentage return x is more than 2%, would that tend to shake your confidence in the statement that ? = 1.4%? If this happened, do you think the European stock market might be heating up? (Round your answer to four decimal places.) P(x > 2%) =
A European growth mutual fund specializes in stocks from the British Isles, continental Europe, and Scandinavia. The fund has over 225 stocks. Let x be a random variable that represents the monthly percentage return for this fund. Suppose x has mean ? = 1.4% and standard deviation ? = 1.5%.
(a) After 9 months, what is the probability that the average monthly percentage return x will be between 1% and 2%? (Round your answer to four decimal places.)
(b) After 18 months, what is the probability that the average monthly percentage return x will be between 1% and 2%? (Round your answer to four decimal places.)
(c) If after 18 months the average monthly percentage return x is more than 2%, would that tend to shake your confidence in the statement that ? = 1.4%? If this happened, do you think the European stock market might be heating up? (Round your answer to four decimal places.)
P(x > 2%) =
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