The data below represent the nationwide highest yields for one-year CDs and five-year CDs. a. First consider the data for one-year CDs. One-Year Five-Year O The variance is CD CD (Round to five decimal places as needed.) 5.36 5.96 5.32 5.89 5.30 5.83 5.29 5.84 5.25 5.78 a. For one-year CDs and five-year CDs, separately compute the variance, standard deviation, range, and coefficient of variation. b. Based on the results of (a), do one-year CDs or five-year CDs have more variation in the highest yields offered? Explain.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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