a) Let's consider the monthly return of the stocks in the fund to be a sample from the population of monthly returns of all European stocks. Is it reasonable to assume that x (the average monthly return on the 375 stocks in the fund) has a distribution that is approximately normal? Explain. Select-v, x is a mean of a sample ofn = 375 stocks. By the -Select- the x distribution Select-v approximately normal. (b) After 9 months, what is the probability that the average monthly percentage return x will be between 1% and 2%? (Round your answer to four decimal places.) (c) After 18 months, what is the probability that the average monthly percentage return x will be between 1% and 2%? (Round your answer to four decimal places.)

a) Let's consider the monthly return of the stocks in the fund to be a sample from the population of monthly returns of all European stocks. Is it reasonable to assume that x (the average monthly return on the 375 stocks in the fund) has a distribution that is approximately normal? Explain. Select-v, x is a mean of a sample ofn = 375 stocks. By the -Select- the x distribution Select-v approximately normal. (b) After 9 months, what is the probability that the average monthly percentage return x will be between 1% and 2%? (Round your answer to four decimal places.) (c) After 18 months, what is the probability that the average monthly percentage return x will be between 1% and 2%? (Round your answer to four decimal places.)

Name: A European growth mutual fund specializes in stocks from the British
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Description: A European growth mutual fund specializes in stocks from the British Isles, continental Europe, and Scandinavia. The fund has over 375 stocks. Let x be a random variable that representsthe monthly percentage return for this fund. Suppose x has mean

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Concept explainers

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.

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A European growth mutual fund specializes in stocks from the British Isles, continental Europe, and Scandinavia. The fund has over 375 stocks. Let x be a random variable that represents
the monthly percentage return for this fund. Suppose x has mean u = 1.2% and standard deviation o = 0.7%.
(a) Let's consider the monthly return of the stocks in the fund to be a sample from the population of monthly returns of all European stocks. Is it reasonable to assume that x (the
average monthly return on the 375 stocks in the fund) has a distribution that is approximately normal? Explain.
Select-v, x is a mean of a sample of n = 375 stocks. By the
v the x distribution -Select- approximately normal.
-Select-
(b) After 9 months, what is the probability that the average monthly percentage return x will be between 1% and 2%? (Round your answer to four decimal places.)
(c) After 18 months, what is the probability that the average monthly percentage return x will be between 1% and 2%? (Round your answer to four decimal places.)
(d) Compare your answers to parts (b) and (c). Did the probability increase as n (number of months) increased? Why would this happen?
O Yes, probability increases as the mean increases.
O Yes, probability increases as the standard deviation decreases.
O Yes, probability increases as the standard deviation increases.
O No, the probability stayed the same.
(e) If after 18 months the average monthly percentage return x is more than 2%, would that tend to shake your confidence in the statement that u = 1.2%? If this happened, do
you think the European stock market might be heating up? (Round your answer to four decimal places.)
P(x > 2%) =
Explain.
O This is very likely if u = 1.2%. One would suspect that the European stock market may be heating up.
O This is very unlikely if u = 1.2%. One would not suspect that the European stock market may be heating up.
O This is very likely if u = 1.2%. One would not suspect that the European stock market may be heating up.
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