Loose Leaf for Statistical Techniques in Business and Economics (Mcgraw-hill/Irwin Series in Operations and Decision Sciences)
16th Edition
ISBN: 9780077639709
Author: Douglas A. Lind, William G Marchal, Samuel A. Wathen
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 10, Problem 38CE
Listed below is the annual rate of return (reported in percent) for a sample of 12 taxable mutual funds.
Using the .05 significance level, is it reasonable to conclude that the
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To analyze the risk, or volatility, associated with investing in General Electric common stock, consider a sample of the eight quarterly percent total returns. The percent total return includes the stock price change plus the dividend
payment for the quarter.
Excel File: data11-06.xlsx
20.0
-20,5
12.2
12.6
10.5
-5.8
-18.7
15.3
a. What is the value of the sample mean (to 1 decimal)?
What is its interpretation?
This is the estimate of the
Select your answer
v mean percent total return per quarter for General Electric.
b. Compute the sample variance and sample standard deviation as measures of volatility for the quarterly return for General Electric (to 2 decimals).
Variance:
Standard deviation:
c. Construct a 95% confidence interval for the population variance (to 2 decimals). Use Table 11.1.
d. Construct a 95% confidence interval for the population standard deviation (to 2 decimals). Use Table 11.1.
To analyze the risk, or volatility, associated with investing in General Electric common stock, consider a sample of the eight quarterly percent
total returns. The percent total return includes the stock price change plus the dividend payment for the quarter.
Excel File: data11-06.xlsx
20.0 -20.5 12.2 12.6 10.5 -5.8 -18.7 15.3
a. What is the value of the sample mean (to 1 decimal)?
What is its interpretation?
This is the estimate of the-Select your answer-mean percent total return per quarter for General Electric.
b. Compute the sample variance and sample standard deviation as measures of volatility for the quarterly return for General Electric (to 2
decimals).
Variance:
Standard deviation:
c. Construct a 95% confidence interval for the population variance (to 2 decimals). Use Table 11.1.
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d. Construct a 95% confidence interval for the population standard deviation (to 2 decimals). Use Table 11.1.
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ReadSpeaker
sample
stocks gave the following yields (in percents).
5.7 4.8 6.0 4.9 4.0 3.4 6.5 7.1 5.3 6.1
ple mean is x = 5.38%. Suppose that for the entire stock market, the
vidend yield is µ = 4.7%. Do these data indicate that the dividend yiel
nk stocks is higher than 4.7%? Use a = 0.01.
What is the level of significance?
te the null and alternate hypotheses. Will you use a left-tailed, right-
ed, or two-tailed test?
Ho: H = 4.7%; H1: µ # 4.7%; two-tailed
Họ: µ = 4.7%; H1: µ > 4.7%; right-tailed
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Chapter 10 Solutions
Loose Leaf for Statistical Techniques in Business and Economics (Mcgraw-hill/Irwin Series in Operations and Decision Sciences)
Ch. 10 - Heinz, a manufacturer of ketchup, uses a...Ch. 10 - Prob. 2SRCh. 10 - For Exercises 14, answer the questions: (a) Is...Ch. 10 - Prob. 2ECh. 10 - Prob. 3ECh. 10 - For Exercises 14, answer the questions: (a) Is...Ch. 10 - For Exercises 58: (a) State the null hypothesis...Ch. 10 - For Exercises 58: (a) State the null hypothesis...Ch. 10 - For Exercises 58: (a) State the null hypothesis...Ch. 10 - For Exercises 58: (a) State the null hypothesis...
Ch. 10 - The mean life of a battery used in a digital clock...Ch. 10 - Given the following hypotheses: H0:10H1:10 A...Ch. 10 - Given the following hypotheses: H0:=400H1:400 A...Ch. 10 - The Rocky Mountain district sales manager of Rath...Ch. 10 - The management of White Industries is considering...Ch. 10 - The mean income per person in the United States is...Ch. 10 - Most air travelers now use e-tickets. Electronic...Ch. 10 - A machine is set to fill a small bottle with 9.0...Ch. 10 - Given the following hypotheses: H0:20H1:20 A...Ch. 10 - Given the following hypotheses: H0:=100H1:100 A...Ch. 10 - The amount of water consumed each day by a healthy...Ch. 10 - The liquid chlorine added to swimming pools to...Ch. 10 - A Washington, D.C., think tank announces the...Ch. 10 - Hugger Polls contends that an agent conducts a...Ch. 10 - Prob. 5SRCh. 10 - Refer to Table 104 and the example just completed....Ch. 10 - Prob. 22ECh. 10 - According to the local union president, the mean...Ch. 10 - Rutter Nursery Company packages its pine bark...Ch. 10 - A new weight-watching company, Weight Reducers...Ch. 10 - Dole Pineapple Inc. is concerned that the 16-ounce...Ch. 10 - According to a recent survey, Americans get a mean...Ch. 10 - A statewide real estate sales agency, Farm...Ch. 10 - According to the Census Bureau, 3.13 people reside...Ch. 10 - A recent article in Vitality magazine reported...Ch. 10 - According to a study by the Federal Reserve Board,...Ch. 10 - A recent article in The Wall Street Journal...Ch. 10 - A recent study revealed the typical American...Ch. 10 - The postanesthesia care area (recovery room) at...Ch. 10 - www.golfsmith.com receives an average of 6.5...Ch. 10 - During recent seasons, Major League Baseball has...Ch. 10 - Watch Corporation of Switzerland claims that its...Ch. 10 - Listed below is the annual rate of return...Ch. 10 - Many grocery stores and large retailers such as...Ch. 10 - For a recent year, the mean fare to fly from...Ch. 10 - The publisher of Celebrity Living claims that the...Ch. 10 - A United Nations report shows the mean family...Ch. 10 - The cost of weddings in the United States has...Ch. 10 - The American Water Works Association reports that...Ch. 10 - A cola-dispensing machine is set to dispense 9.00...Ch. 10 - The owners of the Westfield Mall wished to study...Ch. 10 - The following null and alternate hypotheses are...Ch. 10 - An insurance company, based on past experience,...Ch. 10 - A national grocers magazine reports the typical...Ch. 10 - Refer to the Real Estate data, which report...Ch. 10 - Refer to the Baseball 2012 data, which report...Ch. 10 - Prob. 52DE
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- An investment portfolio contains stocks of a large number of corporations. Over the last year the rates of return on these corporate stocks followed a normal distribution with mean 14.6% and standard deviation 7.5%. a. For what proportion of these corporations was the rate of return higher than 18%? b. For what proportion of these corporations was the rate of return negative? c. For what proportion of these corporations was the rate of return between 10% and 20%? E Click the icon to view the standard normal table of the cumulative distribution function. a. The proportion of corporations whose rate of return was higher than 18% is (Round to four decimal places as needed.) b. The proportion of corporations whose rate of return was negative is (Round to four decimal places as needed.) c. The proportion of corporations whose rate of return was between 10% and 20% is (Round to four decimal places as needed.)arrow_forwardPlz accurate solution.arrow_forwardc. The proportion of buyers who actually make a purchase appears to be relatively constant over time. In 2015, among a sample of 389 on-line buyers, 159 purchased merchandise. In 2019, for a sample of 301 on-line buyers, 138 purchased merchandise. At the .05 level of significance, did the proportion of on-line buyers change from 2015 to 2019?arrow_forward
- 4. Let’s consider a company’s growth rate of sales. Year Annual Growth Rate (%) 1993 6.80 1994 6.10 1995 5.60 1996 5.40 1997 4.90 1998 4.50 1999 4.20 2000 4.00 2001 4.80 2002 5.80 2003 6.20 2004 5.50 2005 5.00 2006 6.10 1) Find the sample mean and sample standard deviation using Minitab using descriptive statistics. 2) The store manager found that the average growth rate in 80s was 6.00%. Using the data, prove if the average growth rate for the sample period was same as that of 80s. 3) Prove if the average growth rate was less than 6arrow_forwardListed below is the annual rate of return (reported in percent) for a sample of 12 taxable mutual funds. 4.63 4.15 4.76 4.70 4.65 4.52 4.70 5.06 4.42 4.51 4.24 4.52 Using the 0.05 significance level, is it reasonable to conclude that the mean rate of return is more than 4.50%? 1.What is the decision rule? (Round your answer to 3 decimal places.) 2.Compute the value of the test statistic. (Round your answer to 3 decimal places.) 3.What is your decision regarding H0?arrow_forwardThe quarterly returns for a group of 68 mutual funds with a mean of 2.8% and a standard deviation of 6.8% can be modeled by a Normal model. Based on the model N(0.028,0.068), what are the cutoff values for the a) highest 20% of these funds? b) lowest 40%? c) middle 80%? d) highest 60%?arrow_forward
- The quarterly returns for a group of 72 mutual funds with a mean of 2.6% and a standard deviation of 5.3% can be modeled by a Normal model. Based on the model N(0.026,0.053), what are the cutoff values for the a) highest 30% of these funds? b) lowest 40%? c) middle 60%? d) highest 60%?arrow_forwardSTATE: Andrew plans to retire in 4040 years. He plans to invest part of his retirement funds in stocks, so he seeks out information on past returns. He learns that from 1966 to 2015, the annual returns on S&P 500500 had mean 11.0%11.0% and standard deviation 17.0%17.0% . PLAN: The distribution of annual returns on common stocks is roughly symmetric, so the mean return over even a moderate number of years is close to Normal. We can use the Central Limit Theorem to make an inference. SOLVE: What is the probability, ?1p1 , assuming that the past pattern of variation continues, that the mean annual return on common stocks over the next 4040 years will exceed 10%10% ? (Enter your answer rounded to two decimal places.) What is the probability, ?2p2 , that the mean return will be less than 5%5% ? (Enter your answer rounded to two decimal places.)arrow_forwardThe table shows the annual compensation of 40 randomly chosen CEOs (millions of dollars). 5.35 1.93 192.00 16.07 17.55 13.00 24.93 8.19 23.62 7.60 27.08 6.38 19.41 4.63 82.81 26.67 31.47 12.83 20.16 6.16 Click here for the Excel Data File Percent (a) Select the correct histogram for the above data. Histogram A Histogram 35 30 25 20 15 10 5 0 40 60 80 14.57 10.32 8.88 9.86 8.89 100 120 Compensation 5.42 3.26 15.58 2.49 5.98 1.73 4.53 0.79 4.46 1.38 140 160 180 4.12 5.56 5.94 2.23 4.05 Percent 35 30 25 20 15 10 5 0 Histogram B Histogram 80 100 120 Compensation 140 160 180 Percent 35 30 25 20 15 10 5 0 20 40 Histogram C Histogram 80 100 120 Compensationarrow_forward
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