The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 5%. The bank will make 1900loans that are under $10,000 next month.Answer the following. (If necessary, consult a list of formulas.)(a) Find the mean of p, where p is the proportion of defaults on the 1900 loans under $10,000 tobe made next month.(b) Find the standard deviation of p.|(c) Compute an approximation for P (p<0.04), which is the probability that 4% or fewer of nextmonth's loans under $10,000 will be defaulted on. Round your answer to four decimal places,ExplanationCheckO 2022 McGraw Hill LLC. AIl Rights Reserved. Terms of Use I Privacy CentMacBookDIIF1080F8F9F7F6F5escF3F4F1F2&

List of formulae : Mean of p^ : μp^ = p Standard deviation of p^ : σp^ = p(1-p)n

Answered: The Credit Risk Department of a major…

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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Over the past six years, a stock had annual returns of 14 percent, -3 percent, 8 percent, 21 percent, -16 percent, and 4 percent, respectively. What is the standard deviation of these returns? 11.27 percent 13.05 percent 13.59 percent 15.08 percent 14.40 percent
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%
I need some help with the following problems on excel.
What is the population standard deviation using the following formula
A researcher wants to investigate the effects of environmental factors on IQ scores. For an initial study, she takes a sample of 400 people who grew up as the only child. She finds that 49.5% of them have an IQ score over 100. It is known that 50% of the general population has an IQ score exceeding 100. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p, where p is the proportion of people with IQ scores over 100 in a random sample of 400 people. (b) Find the standard deviation of p. |(c) Compute an approximation for P(p 20.495), which is the probability that there will be 49.5% or more individuals with IQ scores over 100 in a random sample of 400. Round your answer to four decimal places.
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
Consider the following asset with it's returns over the last 3 years. The arithmetic mean is 8% 1yr 2yr 3yr 8% 4% 6% What is the standard deviation? Respuesta:
A researcher wants to investigate the effects of environmental factors on IQ scores. For an initial study, she takes a sample of 400 people who grew up as the only child. She finds that 51.5% of them have an IQ score over 100. It is known that 50% of the general population has an IQ score exceeding 100. Answer the following. (If necessary, consult a list of formulas.) (a)Find the mean of p, where p is the proportion of people with IQ scores over 100 in a random sample of 400 people. (b)Find the standard deviation of p. (c)Compute an approximation for P≥p0.515, which is the probability that there will be 51.5% or more individuals with IQ scores over 100 in a random sample of 400. Round your answer to four decimal places.
The following are the P/E ratios (price of stock divided by projected earnings per share) for 15 banks. 34, 19, 21, 20, 23, 14, 22, 29, 23, 24, 43, 31, 23, 18, 15 Find 10th and 75th percentiles for these ratios.(If necessary, consult a list of formulas.) (a) The 10th percentile: (b) The 75th percentile:
How many times per year should you order? Use the following information to find out. Lead time: 6 weeks, ordering cost: 100, annual demand: 1196, weekly demand: 23, annual cost to carry one item, stated as a percentage of item cost: 25%, cost per item: 6, safety factor: 1.3, standard deviation of demand during lead time: 50, standard deviation of demand during P + L: 134
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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