Answered: The pandemic has caused serious…

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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The pandemic has caused serious problems for the Pakistan Stock Exchange (PSX). The market has been very volatile. The finance research group of SZABIST Islamabad has found that the corporate governance in the tough times has been a serious issue and has been the main cause of the volatility of the PSX. At the same time the research group also found out that the market has been functioning as a function of normal distribution and the market cap, ×, is found to be normally distributed with standard deviation of 2000 points. The performance measurements of 15 days were taken and the sample mean was found to be 46000 points. Question #1) Keeping in view the hypothetical scenario, answer the following questions. a) Estimate the mean points of the PSX using point estimate b) Find the 99% confidence interval for the mean points of PSX using 15 days points. c) Do you think that the results will change if you apply central limit theorem? Please explain.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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