Answered: a) Researchers studying the returns on…

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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Question

a) Researchers studying the returns on mutual funds for 2012 found that they were normally distributed with a mean of 15% and a standard deviation of 10%. What percentage of mutual funds had a gain (i.e. a return greater than 0)?

= 93.32%

Then,

b) What percent of funds had returns less than 10%?

a. 30.85%
b. 61.70%
c. 69.15%
d. None of the above

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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