Jim Cramer hosts CNBC's “Mad Money" program. Mr. Cramer regularly makes suggestions about which stocks to buy and sell. How well has Mr. Cramer's picks performed over the past two years (2005 to 2007)? To answer the question a random sample of Mr. Cramer's picks was selected. The name of the stock, the buy price of the stock, the current or sold price and the percent return were recorded. a) Estimate with 95% confidence the mean return for all of Mr. Cramer's selections. b) Over the two-year period the Standard and Poor's 500 Index rose by 16%. Is there sufficient evidence to infer that Mr. Cramer's picks have done less well? Use a 5% significance level for all tests.
Jim Cramer hosts CNBC's “Mad Money" program. Mr. Cramer regularly makes suggestions about which stocks to buy and sell. How well has Mr. Cramer's picks performed over the past two years (2005 to 2007)? To answer the question a random sample of Mr. Cramer's picks was selected. The name of the stock, the buy price of the stock, the current or sold price and the percent return were recorded. a) Estimate with 95% confidence the mean return for all of Mr. Cramer's selections. b) Over the two-year period the Standard and Poor's 500 Index rose by 16%. Is there sufficient evidence to infer that Mr. Cramer's picks have done less well? Use a 5% significance level for all tests.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 10CYU
Related questions
Question
| Stock | Buy Price | Current Price/Sold | Percent Gain/Loss | |
| Skyworks Solution | 6.88 | 5.33 | -22.53 | |
| Parker Hannifin | 90.06 | 103.51 | 14.93 | |
| Joy Global | 44.05 | 52.70 | 19.64 | |
| Emerson Electric | 38.65 | 46.96 | 21.50 | |
| Chico's | 40.11 | 19.00 | -52.63 | |
| National Oilwell | 53.94 | 113.48 | 110.38 | |
| Medtronic Inc | 46.53 | 48.10 | 3.37 | |
| El Paso | 12.32 | 13.70 | 11.20 | |
| Kraft Foods | 35.31 | 32.06 | -9.20 | |
| Geoeye | 22.00 | 21.00 | -4.52 | |
| Exxon Mobil | 76.03 | 74.11 | -2.53 | |
| Cheniere Energy | 35.98 | 33.75 | -6.20 | |
| Sturm Ruger | 10.05 | 18.29 | 81.99 | |
| Roper Industries | 46.25 | 61.82 | 33.66 | |
| CBS | 26.18 | 31.39 | 19.90 | |
| Enersys | 14.24 | 18.52 | 30.06 | |
| Revlon | 3.72 | 2.83 | -23.92 | |
| Guess | 53.95 | 74.85 | 38.74 | |
| Martha Stewart | 30.55 | 19.03 | -37.71 | |
| Kimberly Clark | 60.80 | 69.64 | 14.54 |
Above is the excel data and use excel to solve with explanation and write a conclusion at the end, thanks
Transcribed Image Text:Jim Cramer hosts CNBC's "Mad Money" program. Mr. Cramer regularly makes
suggestions about which stocks to buy and sell. How well has Mr. Cramer's picks performed over the
past two years (2005 to 2007)? To answer the question a random sample of Mr. Cramer's picks was
selected. The name of the stock, the buy price of the stock, the current or sold price and the percent
return were recorded.
a) Estimate with 95% confidence the mean return for all of Mr. Cramer's selections.
b) Over the two-year period the Standard and Poor's 500 Index rose by 16%. Is there sufficient
evidence to infer that Mr. Cramer's picks have done less well? Use a 5% significance level for all tests.
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