The Russell 1000 is a stock market index consisting of the largest U.S. companies. TheDow Jones industrial Average is based on 30 large companies. The DATAfile Russellgives the annual percentage returns for each of these stock indexes for the years 1988 to2012 (1stock1 website).a. Plot these percentage returns using a scatter plot.b. Compute the sample mean and standard deviation for each index
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
The Russell 1000 is a stock market index consisting of the largest U.S. companies. The
Dow Jones industrial Average is based on 30 large companies. The DATAfile Russell
gives the annual percentage returns for each of these stock indexes for the years 1988 to
2012 (1stock1 website).
a. Plot these percentage returns using a scatter plot.
b. Compute the sample
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