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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STATISTICS & PROBABILITY Direction: Solve the following problems. Round off your answer to two decimal places. Use the percentage form and include the percentage symbol (%) The length of time needed to do a particular activity is normally distributed with a mean of 2 hours and a standard deviation of 1.25 hours. What is the probability that a randomly selected student will spend 3.5 hours in doing the activity? The monthly food expenditure of a single person is 3000Php on average with a standard deviation of 300Php. Assuming that the monthly food expenditure is normally distributed, what percentage of these expenditures are between 2400Php and 4000Php? Find the area to the right of z = 1.37 Select one: A. 8.53% B. 43.45% C. 31.76% D. 47.88% Find the area between z = 0.46 and z = 2.56 Select one: A. 43.45% B. 31.76% C. 30.15% D. 97.98% Find the area between z = 0 and z = -2.03 Select one: A. 43.45% B. 47.88% C. 8.53% D. 31.76% Find the area to the left…
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
What is the standard deviation of the following investment: Actual Return Probability 5% 40% 45% 10% -12% -5% 15% 20% ○ 4.6% 12.8% 11.0% 9.2%
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.
A probability distribution of the claim sizes for an auto insurance policy appears in the following table. Claims Probability 1 0.15 0.2 3. 0.05 4 0.45 0.15 Find the percentage of claims within one standard deviation of the mean.
Round every calculation to 2 decimal points unless the specific question asks for something different. Show answers as decimals and not percents or fractions.
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
Suppose your expectations regarding the stock price are as detailed in the table below. Compute the mean and standard deviation of the holding period returns on stocks. State of the Market Probability Ending Price HPR (including dividends)Boom 0.23 $140 52.0%Normal growth 0.24 $110 19.0% Recession 0.53 $80 −11.5%
IQ scores have a mean of µ=100 in the general population, and have a standard deviation of σ=15. You take a random sample of n=9 people. What is the probability that your sample mean will be M=95 or less?
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 Viashington, 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 52 times and read the result each time. The 52 scale readings have a sample mean of x = 1000.6 grams. The calibration point is set too high if the mean scale reading is more than 1000 grams. The technicians want to perform a hypothesis test to determine whether the calibration point is set too high. Use a = 0.10 level of significance and the critical value method. Part: 0/5 Part 1 of 5 (a) State the appropriate null and alternate hypotheses. This hypothesis test is a (Choose one) test. right-tailed left-tailed two-tailed
Test an assumption that users are equally likely to be in each of the five age groups.Calculate the chi-square statistic and the p-value.Round your answer for the chi-square statistic to two decimal places, and your answer for the p-value to three decimal places.

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