Suppose the returns on a particular asset are normally distributed. Also suppose theasset had an average return of 12.1% and a standard deviation of 26.6%. Use theNORMDIST function in Excel to determine the probability that in any given year you willlose money by investing in this asset. (Do not round intermediate calculations andenter your answer as a percent rounded to 2 decimal places, e.g., 32.16.):Probability32.46 %

The returns on a particular asset are normally distributed with mean and standard deviation We have…

Answered: Suppose the returns on a particular…

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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Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17.1 percent and the standard deviation of those returns in this period was 41.7 percent. a. What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What about triple in value? (Do not round intermediate calculations and enter your answer as a percent rounded to 6 decimal places, e.g., 32.161616.)
Dandelions have effects on crop production and lawn growth and are studied. In one region, the mean number of dandelions per square meter was found to be 10.8.Find the probability of no dandelions in an area of 1 m².P(X=0)=P(X=0)= Find the probability of at least one dandelion in an area of 1 m².P(at least one) = Find the probability of at most two dandelions in an area of 1 m².P(X≤2)=P(X≤2)=
The NJ Department of Health has reported the average life span of NJ residents is 81 years. If the standard deviation is σ = 4 years, what is the probability of a person living to at least 92 years of age?
Q7
For each probability and percentile problem, draw the picture.Suppose that the length of long distance phone calls, measured in minutes, is known to have an exponential distribution with the average length of a call equal to 12 minutes. Part (g) Find the probability that a phone call lasts less than 13 minutes. (Round your answer to four decimal places.) Part (h) Find the probability that a phone call lasts more than 13 minutes. (Round your answer to four decimal places.) Part (i) Find the probability that a phone call lasts between 9 and 13 minutes. (Round your answer to four decimal places.)
Losses follow an exponential distribution with mean 5000. An insurance policy covers losses subject to a franchise deductible of 2000. Determine the expected insurance payment per loss.
Assuming a population is normally distributed, calculate the probability that a random member of the population falls between 3 standard deviations below the mean and 1 standard deviation below the mean. In other words in mathematical notation: P(-3 < z < -1) Enter your answer in decimal form. For example, 75% should be entered as 0.75.
mnomy use the standard deviation of the monthly percentage return for a mutual fund as a measure of the risk for the fund; in such cases, a fund that has a larger standard deviation is considered more risky than a fund with a lower standard deviation. The standard deviation for the American Century Equity Growth fund and the standard deviation for the Fidelity Growth Discovery fund were recently reported to be 15.0% and 18.9%, respectively. Assume that each of these standard deviations is based on a sample of 60 months of returns. Do the sample results support the conclusion that the Fidelity fund has a larger population variance than the American Century fund? Which fund is more risky? (17. ) Most individuals are aware of the fact that the average annual repair cost for an auto- mobile depends on the age of the automobile. A researcher is interested in finding out whether the variance of the annual repair costs also increases with the age of the auto- mobile. A sample of 26…

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