James is a businessman who normally invests in stocks. He would like to invest in one of the stocks listed in the stock exchange. His stockbroker has a past record of the price behavior over the last 100 days. This information is summarized in the table below: Frequency Price (Shs) Stock A Stock B 10 - 15 4 15 - 20 19 7 20 - 25 31 13 25 - 30 29 16 30 - 35 10 38 35 - 40 4 15 40 - 45 7 Required: a. Compute the average price and standard deviation for stock A b. Given that Stock B had an average price of 30 with a standard deviation of 7.33, which stock had a higher average price?
James is a businessman who normally invests in stocks. He would like to invest in one of the stocks listed in the stock exchange. His stockbroker has a past record of the price behavior over the last 100 days. This information is summarized in the table below: Frequency Price (Shs) Stock A Stock B 10 - 15 4 15 - 20 19 7 20 - 25 31 13 25 - 30 29 16 30 - 35 10 38 35 - 40 4 15 40 - 45 7 Required: a. Compute the average price and standard deviation for stock A b. Given that Stock B had an average price of 30 with a standard deviation of 7.33, which stock had a higher average price?
Chapter9: Sequences, Probability And Counting Theory
Section9.7: Probability
Problem 60SE: Use this data for the exercises that follow: In 2013, there were roughly 317 million citizens in the...
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James is a businessman who normally
invests in stocks. He would like to invest in
one of the stocks listed in the stock
exchange. His stockbroker has a past
record of the price behavior over the last
100 days. This information is summarized
in the table below:
Frequency
Price (Shs)
Stock A
Stock B
10 - 15
4
15 - 20
19
7
20 - 25
31
13
25 - 30
29
16
30 - 35
10
38
35 - 40
4
15
40 - 45
7
Required:
a. Compute the average price and
standard deviation for stock A
b. Given that Stock B had an average
price of 30 with a standard deviation
of 7.33, which stock had a higher
average price?
lames would profor to buy the stock.
...
Transcribed Image Text:30 - 35
10
38
35 - 40
4
15
40 - 45
7
Required:
a. Compute the average price and
standard deviation for stock A
b. Given that Stock B had an average
price of 30 with a standard deviation
of 7.33, which stock had a higher
average price?
c. James would prefer to buy the stock
whose price is more stable. Which
one would you recommend? Why?
2.
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