STATISTICS F/BUSINESS+ECONOMICS-TEXT
13th Edition
ISBN: 9781305881884
Author: Anderson
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 11.1, Problem 7E
To analyze the risk, or volatility, associated with investing in General Electric common stock, a sample of the eight quarterly percent total returns was identified as shown below (Charles Schwab website, January 2012). The percent total return includes the stock price change plus the dividend payment for the quarter.
| 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? What is its interpretation?
- b. Compute the sample variance and sample standard deviation as measures of volatility for the quarterly return for general electric.
- c. Construct a 95% confidence interval for the population variance.
- d. Construct a 95% confidence interval for the population standard deviation.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
A stock has had the following year-end prices and dividends:
Year
Price
Dividend
1
$ 65.03
—
2
71.90
$ .74
3
77.70
.79
4
63.97
.85
5
74.51
.94
6
86.75
1.01
What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
FARO Technologies, whose products include portable 3D measurement equipment, recently had 26 million shares outstanding trading at $45 a share. Suppose the company announces its intention to raise $290 million by selling new shares.
How large a loss in dollar terms will existing FARO shareholders experience on the announcement date, based on studies that show losses are 30% of the size of the new issue?
Note: Enter your answer in millions without a sign.
What percentage of the value of FARO’s existing equity prior to the announcement is this expected loss?
Note: Round your answer to 1 decimal place.
At what price should FARO expect its existing shares to sell immediately after the announcement?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
calculate the percent change in the U.S. national debt from March, 2020 to June, 2020 and compare it to the percent change in the U.S. national debt just before, from December, 2019 to March, 2020, and just after, from June, 2020 to September 2020. Write all your work here. in billion US dollars (march2020 23,686.87) (June2020 26,477.24)(Sep2020 26,945.39) (December 2019 23,223.81)
Chapter 11 Solutions
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Ch. 11.1 - Find the following chi-square distribution values...Ch. 11.1 - A sample of 20 items provides a sample standard...Ch. 11.1 - A sample of 16 items provides a sample standard...Ch. 11.1 - The variance in drug weights is critical in the...Ch. 11.1 - John Calipari, head basketball coach for the 2012...Ch. 11.1 - Americans spend nearly 7 billion on Halloween...Ch. 11.1 - To analyze the risk, or volatility, associated...Ch. 11.1 - Consider a day when the Dow Jones industrial...Ch. 11.1 - An automotive part must be machined to close...Ch. 11.1 - Consumer Reports uses a 100-point customer...
Ch. 11.1 - At the end of 2008, the variance in the semiannual...Ch. 11.1 - A Fortune study found that the variance in the...Ch. 11.2 - Find the following F distribution values from...Ch. 11.2 - A sample of 16 items from population 1 has a...Ch. 11.2 - Consider the following hypothesis test....Ch. 11.2 - Investors commonly use the standard deviation of...Ch. 11.2 - Most individuals are aware of the fact that the...Ch. 11.2 - Data were collected on the top 1000 financial...Ch. 11.2 - The variance in a production process is an...Ch. 11.2 - On the basis of data provided by a Romac salary...Ch. 11.2 - Many smartphones, especially those of the...Ch. 11.2 - A research hypothesis is that the variance of...Ch. 11 - Because of staffing decisions, managers of the...Ch. 11 - Initial public offerings (IPOs) of stocks are on...Ch. 11 - The estimated daily living costs for an executive...Ch. 11 - Part variability is critical in the manufacturing...Ch. 11 - The filling variance for boxes of cereal is...Ch. 11 - City Trucking, Inc., claims consistent delivery...Ch. 11 - A sample of 9 days over the past six months showed...Ch. 11 - A sample standard deviation for the number of...Ch. 11 - Is there any difference in the variability in golf...Ch. 11 - The grade point averages of 352 students who...Ch. 11 - The accounting department analyzes the variance of...Ch. 11 - Two new assembly methods are tested and the...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- Suppose that the following table gives information about your mutual fund: Year Rate of Return 2017 2018 5.4% 2019 4.9% The overall rate of return between 2017 and 2019 was 5%. If you invested $2,000 in this fund at the beginning of 2017, what would your investment be worth at the end of 2017? Round your answer to the nearest dollar.arrow_forwardA bond pays a return (simple interest) of 5% and has a default rate of 3%. This bond is purchased for $1000.00. What is the expected rate of return for the purchaser?arrow_forwardB. What is the average rate of increase of the profits between 2011 and 2014? c.arrow_forward
- A rental car company purchased a new Toyota Camry for $35,000. The company determined this asset should be depreciated for six years using the straight-line depreciation method. At the end of six years, the car will be worth $30,500. Estimate the value of the car at Year 4. Question 4 options: $33,500 $32,000 $32,750 $11,667 $31,2arrow_forwardCalculate the missing information for the stock. (Round current yield to the nearest tenth of a percent.) Company Earningsper Share AnnualDividend Current Priceper Share CurrentYield(as a %) Price-EarningsRatio a medical case management company $6.69 $1.30 $53.52 %arrow_forwardThe following table lists several corporate bonds issued during a particular quarter. Company AT&T Bank Of America General Electric Goldmans Sachs Verizon Wells Fargo Time to Maturity (Years) 10 10 2 3 8 7 Anuall Rate (%) 3.40 3.00 5.25 7.15 5.15 2.50 If the General Electric bonds you purshased had paid you a total of $8,840 at maturity,how much did you originally invest? (Round your answer to the nearest dollar.) $arrow_forward
- 1.On June 10, 2010 The Boston Globe reported that in the six years between 2006 and 2012 Boston firefighters received raises of 2%, 2.5%, 3%, 3.5%, 2.5% and 1.5%. (a) Explain why the overall raise for this six years period is not just the sum of the six percentage increases. (b) What was the firefighters’ overall raise for the six years period?arrow_forward10 The observed insurance policy deviates from the predicted policy, on average, by _______ ($1,000) a 44.465 b 49.406 c 54.895 d 60.994arrow_forward1. c, d in 1941 A.J. liebling wrote in the new yorker that mr. ormont, the manager of the jollity building, was paid $50 a week plus a commission of two percent of the rents. that commision earned him an extra two thousand dollars a year. c) what was his annual income in 1941? d) what would mr. ormont's annual income be today adjusted for inflation?arrow_forward
- 470 q 19 if the annual geometric mean for the equity risk premium is 8.4 %, what % of the equity risk premium is consumed by trading costs of 1.2%? a. 7.2% b. 9.6% c. 9.7% d. 10.08% e. 14.29%arrow_forwardConsider the following binomial option model. Stock price is 10 dollars now. In 1 year it can go to 12 dollars or 8 dollars. Interest rate with annual compounding is 10 percent. What ish the price of a 1 year call with strike 11.arrow_forward13 if an investment of P750,000 that matures in 15 years but with certain specification that P 500000 will earn an interest of half of 1% paid semi-annually for 5 years and the remaining amount of investment will earn half of 1 percent for the remaining years paid quarterly. what is the FV of this investment? a. 305,198.56 b. 335,979.09 c. 830, 768.62 d. 888,019.49arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSON
The Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. Freeman
Introduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman
MATLAB: An Introduction with Applications
Statistics
ISBN:9781119256830
Author:Amos Gilat
Publisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...
Statistics
ISBN:9781305251809
Author:Jay L. Devore
Publisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...
Statistics
ISBN:9781305504912
Author:Frederick J Gravetter, Larry B. Wallnau
Publisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...
Statistics
ISBN:9780134683416
Author:Ron Larson, Betsy Farber
Publisher:PEARSON
The Basic Practice of Statistics
Statistics
ISBN:9781319042578
Author:David S. Moore, William I. Notz, Michael A. Fligner
Publisher:W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:9781319013387
Author:David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:W. H. Freeman
Solve ANY Optimization Problem in 5 Steps w/ Examples. What are they and How do you solve them?; Author: Ace Tutors;https://www.youtube.com/watch?v=BfOSKc_sncg;License: Standard YouTube License, CC-BY
Types of solution in LPP|Basic|Multiple solution|Unbounded|Infeasible|GTU|Special case of LP problem; Author: Mechanical Engineering Management;https://www.youtube.com/watch?v=F-D2WICq8Sk;License: Standard YouTube License, CC-BY
Optimization Problems in Calculus; Author: Professor Dave Explains;https://www.youtube.com/watch?v=q1U6AmIa_uQ;License: Standard YouTube License, CC-BY
Introduction to Optimization; Author: Math with Dr. Claire;https://www.youtube.com/watch?v=YLzgYm2tN8E;License: Standard YouTube License, CC-BY