6.The trading skills of institutional stock investors were quantified and analyzedin The Journal of Finance. The study focuses on "round-trip" traders, i.e., trades inwhich the same stock was both bought and sold in the same quarter. Consider arandom sample of 200 round-trip traders made by institutional investors. Supposethe sample mean rate of return is 2.50% and the sample deviation is 8.85%. If thetrue mean rate of return of round-trip trades is positive, then the population ofinstitutional investors is considered to have performed successfully.a. Specify the null and alternative hypotheses for determining whether thepopulation institutional investors performed successfully.b. Calculate the test statistic.c. Use either rejection region or p-value approach to give the appropriateconclusion at a =.01.

Answered: Image /qna-images/answer/9db2bc57-4ea8-4698-8640-1d25f1256dcd.jpg

Answered: 6. The trading skills of institutional…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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1. A researcher suspects that the actual prevalence of depression among children and adolescents is higher than was previously reported. The previously reported prevalence for depression among children and adolescents was 12.5%, and the researcher conducts a study to test the accuracy of the previously reported prevalence of depression among children and adolescents by recruiting 100 total children or adolescents and tests them for depression using the DSM-5. The researcher determines that the prevalence of depression from the study is 12.9% and the standard deviation was 0.4. What should the researcher’s conclusion be for a 5% significance level? Choose from the following. A) We reject H0 at the 5% level because 10 is greater than 1.96. We do have statistically significant evidence to show the actual prevalence of depression among children and adolescents is above the previously reported prevalence of 12.5%. B) We fail to reject H0 at the 5% because -10 is less than 1.645. We do…
1.Suppose a used car dealer runs autos through a two-stage process to get them ready to sell. The mechanical checkup costs $50 per hour and takes an average of 90 minutes, with a standard deviation of 15 minutes. The appearance prep (wash, polish, etc.) costs $6 per hour and takes an average of 60 minutes, with a standard deviation of 5 minutes. What are the mean and standard deviation of the total time spent preparing a car? (Note that we cannot find the standard deviation if we do not believe that the two phases of the process are independent, an important assumption to check.) b). What are the mean and standard deviation of the total expense to prepare a car? c). What are the mean and standard deviation of the difference in costs for the two phases of the operation? d). What is the probability that it will take longer to do the appearance prep than the mechanical checkup? (Note that we cannot answer this question unless we believe each phase of the process can be described by a…
An investment company is promoting their mutual investment funds. Their fund specializing in the Hong Kong stock market has been consistently outperforming the Hang Seng Index over the last ten years. The company argues that such strong performance is proof of their great ability in selecting stocks for long-term investment. Based on your understanding of the data generating process and the possible biases associated with it, provide an alternative interpretation of the statistics about fund performance.
What is the answers for b and c?
2. Monthly rates of return on the shares of a particular common stock are independent of one another and normally distributed with a variance of 2.89. A sample of 12 months is taken. a. Find the probability that the sample standard deviation is less than 2.5? b. Find the probability that the sample standard deviation is bigger than 1.0?
10. In a study conducted to determine the role that sleep disorders play in academic performance, researcher Jane Gaultney conducted a survey of 503 randomly selected students with a known sleep disorder (such as narcolepsy, insomnia, or restless leg syndrome) and found their mean GPA was 2.65 with a standard deviation of 0.87. Similarly, she randomly selected 1342 students with no known sleep disorders, and found their mean GPA to be 2.82 with a standard deviation of 0.83. You may assume that both population GPA's are normally distributed. Use a significance level of 0.05 to test whether the two groups have different mean GPA's. As a follow-up, construct and interpret a 95% confidence interval for the true difference in the mean GPA's of the two groups. What would be the type I and type II errors for this problem?
4. According to a 2019 Federal Reserve report, 54% of U.S. young adults who went to college took on some debt for their education. Suppose we take a random sample of 400 U.S. young adults who went to college and took on some debt, a) Find the mean and standard of the sampling distribution of ?̂. mean= ?? = standard deviation of the sample proportion, ?? = b) Determine the probability that more than 60% of the persons in the sample took on some debt.
A. The salaries of pharmacy techs are normally distributed with a mean of $33,000 and a standard deviation of $4,000. If a pharmacy tech is selected at random, what is the probability they make more than $38,000? The answer should be typed as a decimal with 4 decimal places. B. The salaries of pharmacy techs are normally distributed with a mean of $33,000 and a standard deviation of $4,000. What is the minimum salary to be considered the top 6%? Round final answer to the nearest whole number. C. The average number of shoppers at a particular grocery store in one day is 505, and the standard deviation is 115. The number of shoppers is normally distributed. For a random day, what is the probability that there are between 250 and 450 shoppers at the grocery store? The answer should be typed as a decimal with 4 decimal places.
. Thirteen analysts have given the following fiscal-year earnings forecasts for a stock: Forecast (Xi) 0.70 0.72 0.74 0.75 0.76 0.77 0.82 number of analysts (ni) 2 4 1 3 1 1 1 Because the sample is a small fraction of the number of analysts who follow this stock, assume that we can ignore the finite population correction factor. a. what are the mean forecast and standard deviation of forecasts? B. what aspect of the data makes us uncomfortable about using t-tables to construct confidence intervals for the population mean forecast?
2. An investment consultation firm claims that it will increase the returns on its clients' investments to a. average of 20% of the original investments, with minimal risk involved. In a random sample of 50 clients of the firm, the average return on investments with minimal risk was 18.5% of the original investment, with a standard deviation of 0.5%. a. Find the z-value, rounded to the nearest hundredth. b. Is there enough evidence to reject the firm's claim?
2. Monthly rates of return on the shares of a particular common stock are independent of one another and normally distributed with a variance of 2.89. A sample of 12 months is taken. a. Find the probability that the sample standard deviation is less than 2.5? b. Find the probability that the sample standard deviation is bigger than 1.0?

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