An engineer wishes to design a test to find the mean resistance of a wire. He wants to determine a sample size so that if the mean is different than 0.8 ohms (say, in reality the mean is more than 0.15 ohms different from 0.8 in either direction), the test will detect this with high probability, like 90%. The standard deviation is known to be 0.9 and the significance level of the test 0.08. What is the required sample size? 110.25
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- a risk manager gathers the following sample data to analyze annual returns for an asset: 12%, 25% and -1%. he wants to compute the best unbiased estimator of the true population mean and standard deviation. the manager's estimate of the standard deviation for this asset should be closest to a. 0.0111 b. 0.0113 c. 0.1054 d. 0.1204.Calculate the range, the expected rate of return, the variance, and the standard deviation for the problem below: Economic Condition Probability Expected Return Better than expected 0.15 0.65 Good 0.25 0.3 Average 0.45 0.15 Poor 0.1 -0.15 Terrible 0.05 -0.35How large a sample should be selected to provide a 95% confidence interval with a margin of error of 6? Assume that the population standard deviation is 20. Round your answer to next whole number.
- Hi, An investor will choose between Asset Q with an expected return of 6.5% and a standard deviation of 5.5%, Asset U with an expected return of 8.8% and a standard deviation of 5.5%, and Asset B with an expected return of 8.8% and a standard deviation of 6.5%. Which one should the investor prefer? Thank youWhat are the two major types of tests that have been performed totest the validity of the CAPM? (beta stability; slope of the SML)Explain their results.A manufacturing firm just received a shipment of 20 assembly parts, of slightly varied sizes, from a vendor. The manager knows that there are only 15 parts in the shipment that would be suitable. He examines these parts one at a time.a. Find the probability that the first part is suitable. (Round your answer to 2 decimal places.) b. If the first part is suitable, find the probability that the second part is also suitable. (Round your answer to 4 decimal places.) c. If the first part is suitable, find the probability that the second part is not suitable. (Round your answer to 4 decimal places.)
- I drag a stick at 2 m/s through an extremely shallow rectangular box filled with oil, creating a shock wave. I measure the angle made by the wave with the line along which the stick isdragged to be 45°. What is the speed of surface waves in this box?The standard deviation of.alt=”f$ar{X},f$ “> is usually called the A.standard error of the sample B.randomized standard error C.standard error of the mean D.standard error of the populationUsing the graph, answer the following standard deviation questions: 1. As the standard deviation for Martin Products' distribution increases, the distribution for Martin Products: becomes steeper and more like the distribution for U.S. Water does not change becomes flatter and less like the distribution for U.S. Water might either become steeper or flatter 2. Use the slider to set the standard deviation for Martin Products to be 6.0. The probability of having a rate of return of at least 5% (move the cursor to 5.0) is greater for U.S. Water than for Martin Products is the same for both U.S. Water and the Martin Products distribution is greater for Martin Products than U.S. Water cannot be determined 3. Use the slider to set the standard deviation for the Martin Products distribution to 8.0. The probability of having a rate of return of at least 10% (move the vertical line to 10.0) is greater for U.S. Water than for Martin Products is the same for both U.S. Water and the Martin…
- Which of the following statements is not true if the precision interval for a sampling risk of 10 percent ranges from 60 to 70?a. A 10 percent probability exists that the true population value is less than 60 or more than 70.b. A 90 percent probability exists that the true population value is less than 60 or more than 70.c. The reliability is 90 percent.d. The precision is 5.A project’s coefficient of variation is 0.55. The project has a positive coefficient of correlation of 0.20. The expected value is $1,200. What is the standard deviation?Evaluating Stand-Alone Risk: Example 9-4, (page 411) Conestoga Ltd. has the following estimated probability distribution of returns. Return Probability 4% .20 12% .50 14% .30 Calculate Conestoga’s expected return, the variance and standard deviation of its expected return and the return’s coefficient of variation. Please explain to me in detail how the variance of returns is obtained. I don't understand the equation used to get the answer.