Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data. x: 33 0 24 32 29 23 31 −11 −21 −21 y: 20 −9 14 28 16 23 14 −7 −3 −3 (a) Compute Σx, Σx2, Σy, Σy2. Σx Σx2 Σy Σy2 (b) Use the results of part (a) to compute the sample mean, variance, and standard deviation for x and for y. (Round your answers to four decimal places.) x y x s2 s (c) Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.) x y Lower Limit Upper Limit
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data. x: 33 0 24 32 29 23 31 −11 −21 −21 y: 20 −9 14 28 16 23 14 −7 −3 −3 (a) Compute Σx, Σx2, Σy, Σy2. Σx Σx2 Σy Σy2 (b) Use the results of part (a) to compute the sample mean, variance, and standard deviation for x and for y. (Round your answers to four decimal places.) x y x s2 s (c) Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.) x y Lower Limit Upper Limit
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 2CYU
Question
Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for Vanguard Total Stock Index (all stocks). Let y be a random variable representing annual return for Vanguard Balanced Index (60% stock and 40% bond). For the past several years, we have the following data.
x: |
33
|
0
|
24
|
32
|
29
|
23
|
31
|
−11
|
−21
|
−21
|
y: |
20
|
−9
|
14
|
28
|
16
|
23
|
14
|
−7
|
−3
|
−3
|
(a) Compute Σx, Σx2, Σy, Σy2.
(b) Use the results of part (a) to compute the sample mean, variance, and standard deviation for x and for y. (Round your answers to four decimal places.)
(c) Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.)
Σx | Σx2 | ||
Σy | Σy2 |
(b) Use the results of part (a) to compute the sample mean, variance, and standard deviation for x and for y. (Round your answers to four decimal places.)
x | y | |
x | ||
s2 | ||
s |
(c) Compute a 75% Chebyshev interval around the mean for x values and also for y values. (Round your answers to two decimal places.)
x | y | |
Lower Limit | ||
Upper Limit |
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