Information for Questions 19 -21: The S & P 500 is a collection of 500 stocks of publicly traded companies. Using data normally distributed. The mean rate of return is 0.007443 and the standard deviation is 0.04135.

MATLAB: An Introduction with Applications
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Q21 Thanks a lot
Information for Questions 19-21: The S & P 500 is a collection of 500 stocks of publicly traded companies. Using data
normally distributed. The mean rate of return is 0.007443 and the standard deviation is 0.04135.
What is the probability that a randomly selected month has a positive rate of return? That is, what is P(X > 0)?
Transcribed Image Text:Information for Questions 19-21: The S & P 500 is a collection of 500 stocks of publicly traded companies. Using data normally distributed. The mean rate of return is 0.007443 and the standard deviation is 0.04135. What is the probability that a randomly selected month has a positive rate of return? That is, what is P(X > 0)?
QUESTION 21
What is the probability that the mean monthly return for a five year period is positive? That is, for n= 60 months, what is P(the sample mean (x-bar) > 0)?
a. 0.84
b. 0.16
O c. 0.50
d. 0.92
O e. 0.08
Transcribed Image Text:QUESTION 21 What is the probability that the mean monthly return for a five year period is positive? That is, for n= 60 months, what is P(the sample mean (x-bar) > 0)? a. 0.84 b. 0.16 O c. 0.50 d. 0.92 O e. 0.08
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