Assume that the economy can experience high growth, normal growth, or recession. Under these conditions, you expect the folowingstock market returns for the coming yearState of the EcononyHigh GrowthNormal GrovthRecessionProbability0.20.70.1Return33413%-336a. Compute the expected value of a $1,000 investment over the coming year, If you invest $1,000 today, how much money do youexpect to have next year? What is the percentage expected rate of return?Instructions: Enter dollar values rounded to the nearest whole dollar and percentages rounded to one decimal place.The expected value is $1and the expected rate of return isb. Compute the standard deviation of the percentage return over the coming yearStandard deviationcif the resk-free return is 7 percent, what is the risk premium for a stock market investment?Risk premium OS

Given : State of the Economy Probability , P Return , R High Growth 0.2 33% Normal Growth 0.7…

Answered: a. Compute the expected value of a…

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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SAT exam math scores are normally distributed with mean 523 and standard deviation 89. We take a random sample of 25 test-takers and find their mean SAT math score. How likely is this mean to be larger than 600? a. essentially 100% of samples will have this characteristic b. .8065 c. .1935 d. .000008
Doctors are testing a new antidepressant. A group of patients, all with similar characteristics, take part in the study. Some of the patients receive the new drug, while others receive the traditional drug. During the study, a number of patients complain about insomnia. The data are shown in the contingency table below. What is the relative risk of insomnia for those who receive the new drug? Round to two decimal places. New drug Total Insomnia No insomnia Total Traditional drug 36 Provide your answer below: 52 88 226 295 521 278 331 609
Calibrating a scale: Making sure that the scales used by businesses in the United States are accurate is the responsibility of the National Institute for Standards and Technology (NIST) in Washington, D.C. Suppose that NIST technicians are testing a scale by using a weight known to weigh exactly 1000 grams. The standard deviation for scale reading is known to be o= 3.2. They weigh this weight on the scale 60 times and read the result each time. The 60 scale readings have a sample mean of x = 1000.8 grams. The calibration point is set too high if the mean scale reading is greater than 1000 grams. The technicians want to perform a hypothesis test to determine whether the calibration point is set too high. Use the a = 0.05 level of significance and the P-value method with the TI-84 calculator. Part 1 of 4 State the appropriate null and alternate hypotheses. H: H = 1000 H:p> 1000 This hypothesis test is a right-tailed test. Part: 1/4 Part 2 of 4 Find the P-value. Round the answer to at…
Observe the mean, the standard deviation, and the CV of the annual rate of return of the portfolio. Apple Historical Annual Stock Price Data Year Average Stock Price Year Open Year High Year Low Year Close Annual % Change 2021 135.6974 129.4100 156.6900 116.3600 148.7600 12.11% 2020 95.3468 75.0875 136.6900 56.0925 132.6900 80.75% 2019 52.0640 39.4800 73.4125 35.5475 73.4125 86.16% 2018 47.2634 43.0650 58.0175 36.7075 39.4350 -6.79% 2017 37.6378 29.0375 44.1050 29.0050 42.3075 46.11% 2016 26.1510 26.3375 29.5625 22.5850 28.9550 10.03% 2015 30.0096 27.3325 33.2500 25.7800 26.3150 -4.64% 2014 23.0661 19.7546 29.7500 17.8494 27.5950 37.72% 2013 16.8798 19.6082 20.3604 13.9475 20.0364 5.42% 2012 20.5732 14.6868 25.0750 14.6868 19.0062 31.40% 2011 13.0002 11.7704 15.0800 11.2614…
Hz A certain brokerage house wants to estimate the mean daily return on a certain stock. A random sample of 19 days yields the following return percentages. -2.4, -2.64, 0.75, 1.96, 0.25, -2.17, 1.74, 2.59, 2.97,-0.86, -2.55, -0.72, -1.33, -0.95, -1.73, 2.49, 0.82, 0.15, -2.18 Send data to calculator Send data to Excel If we assume that the returns are normally distributed, find a 90% confidence interval for the mean daily return on this stock. Give the lower limit and upper limit of the 90% confidence interval. Carry your intermediate computations to at least three decimal places. Round your answers to one decimal place. (If necessary, consult a list of formulas.) Lower limit: Upper limit: I Don't Know Submit X 3 O Search e acer Ⓒ2022 McGraw Hill LLC. All Rights Reserved. Terms of Use * X
The figure in the popup window, shows the one-year return distribution for RCS stock. Calculate: a. The expected return. b. The standard deviation of the return. Note: Make sure to round all intermediate calculations to at least five decimal places.
Empirical research on stock market data for two consecutive trading days indicates that 60% of the stocks that went up on the first day also went up on the second day. Yesterday, 600 stocks went up. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p, where p gives the proportion of the 600 stocks that went up yesterday that will go up today. (b) Find the standard deviation of p. (c) Compute an approximation for P(p <0.58), which is the probability that fewer than 58% of the stocks that went up yesterday will go up again today. Round your answer to four decimal places.
Electricity bills: According to a government energy agency, the mean monthly household electricity bill in the United States in 2011 was $108.87 . Assume the amounts are normally distributed with standard deviation $18.00 . Use Excel to answer the following. Round the answer to four decimal places. Part: 0 / 3 0 of 3 Parts Complete Part 1 of 3 (a) What proportion of bills are greater than $134 ? The proportion of bills that are greater than $134 is . Part: 1 / 3 1 of 3 Parts Complete Part 2 of 3 (b) What proportion of bills are between $83 and $145 ? The proportion of bills that are between $83 and $145 is . Part: 2 / 3 2 of 3 Parts Complete Part 3 of 3 (c) What is the probability that a randomly selected household had a monthly bill less than $118 ? The probability that a randomly selected household had a monthly bill less…
Electricity bills: According to a government energy agency, the mean monthly household electricity bill in the United States in 2011 was $109.77 . Assume the amounts are normally distributed with standard deviation $22.00 . Use Excel to answer the following. Round the answer to four decimal places. Part: 0 / 3 0 of 3 Parts Complete Part 1 of 3 (a) What proportion of bills are greater than $137 ? The proportion of bills that are greater than $137 is.
You wish to determine which of two brands of TVs is more expensive. You conduct the following sample, which suggests that Orion TVs are more expensive: Orion: ā = $318, sª = 12.6, п — 30 Luna: ā = $313, 8z = 15.1, n = 25 Define your variable: O Let p be the proprotion Orion TVs in the sample that cost more than Luna TVs. OLet u be the mean price of TVs, in dollars Let mu the mean price of Orion TVs, in dollars. Let u be the mean price of sampled TVs, in dollars. Write your hypotheses: Be sure to chose Group 1 to have the larger sample mean. Но: Opi – P2 = 0 O pi – P2 = 318 – 313 Ο μ-μ 5 µi - µ2 = 0 HA: Hi – µ2 > 0 O ui – u2 < 0 µi – µ2 = 5 Opi - - P2 = 318 – 313
Empirical research on stock market data indicates that over the course of a year, 60% of stocks go up. A random sample of 600 stocks is going to be chosen at the beginning of next year. Let p be the proportion of the stocks in the sample that go up over the course of a year. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p. 0 (b) Find the standard deviation of p. 0 (c) Compute an approximation for P(p>0.64), which is the probability that more than 64% of the stocks in the sample go up over the course of the year. Round your answer to four decimal places. X 5
A panel of 66 economists was asked to predict the average unemployment rate for the upcoming year. The results of the survey follow. Unemployment Rate, % 9.6 10.0 10.4 10.8 11.2 11.6 12.0 Economists 2 4 7 23 14 11 5 On the basis of this survey, what does the panel expect the average unemployment rate to be next year? (Round your answer to two decimal places.)

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