Use the 68-95-99.7 Rule to approximate the probability rather than using technology to find the values more precisely.The daily closing price of a stock (in $) is well modeled by a Normal model with mean $158.69 and standard deviation $4.84. According to this model, what cutoff value(s) of price wouldseparate the following percentage?a) lowest 16%b) lowest 50%d) highest 0.15%c) middle 99.7%a) The cutoff value would be $(Type an integer or a decimal rounded to the nearest cent as needed.)

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Answered: Use the 68-95-99.7 Rule to approximate…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Pax World Balanced is a highly respected, socially responsible mutual fund of stocks and bonds. Vanguard Balanced Index is another highly regarded fund that represents the entire U.S. stock and bond market (an index fund). The mean and standard deviation of annualized percent returns are shown below. The annualized mean and standard deviation are for a recent 10-years period.†. If x represents return and s represents risk, then explain why the coefficient of variation can be taken to represent risk per unit of return. From this point of view, which fund appears to be better? Explain. A. Since the CV is s/s2 we can say that the CV represents the risk per unit of return; the Pax fund appears to be better because the CV is smaller. B. Since the CV is s/s2 we can say that the CV represents the risk per unit of return; the Vanguard fund appears to be better because the CV is smaller. C. Since the CV is s/x we can say that the CV represents the risk per unit of return; the Pax fund…
One year consumers spent an average of $22 on a meal at a resturant. Assume that the amount spent on a resturant meal is normally distributed and that the standard deviation is $3. Complete parts (a) through (c) below. Between what two values will the middle 95% of the amounts of cash spent fall?
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
Over the first five years of owning her car, Gina drove about 12,700 miles the first year, 15,478 miles the second year, 12,675 the third year, 11,850 the fourth year, and 13,075 the fifth year. a. Find the mean, median, and mode of this data. b. Explain which measure of central tendency will best predict how many miles Gina will drive in the sixth year. a. mean= 12,700; median= 13,156; no mode; the mean is the best choice because it is representative of the entire data set. b. mean= 13,156; median= 12,700; mode= 3,628; the median is the best choice because it is not skewed by the high outlier. c. mean= 13,156; median= 12,700; no mode; the mean is the best choice because it is representative of the entire data set. d. mean= 13,156; median= 12,700; no mode; the median is the best choice because it is not skewed by the high outlier.
Assume that a randomly selected subject is given a bone density test. Bone density test scores are normally distributed with a mean of 0 and a standard deviation of 1. Draw a graph and find P9, the 9th percentile. This is the bone density score separating the bottom 9% from the top 91%. Which graph represents P9? Choose the correct graph below.
The graph illustrates a normal distribution for the prices paid for a particular model of HD television. The mean price paid is $1600 and the standard deviation is $140.What is the approximate percentage of buyers who paid less than $1320? What is the approximate percentage of buyers who paid less than $1180?
Fortune magazine's list of the world's most admired companies for 2014 is provided in the data contained in the file Admired Companies (Fortune magazine website). The data in the column labeled "Return" shows the one-year total return (%) for the top-ranked 50 companies. For the same time period the S&P average return was 18.4%. Click on the datafile logo to reference the data. DATA file a. Compute the median return for the top-ranked 50 companies (to 1 decimal). % b. What percentage of the top-ranked 50 companies had a one-year return greater than the S&P average return (to the nearest percent)? % c. Develop the five-number summary for the data. If required, round your answers to two decimals places. If required, enter negative values as negative numbers. Minimum First Quartile Median Third Quartile Maximum Return
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:
A realtor is displaying the histogram below, which summarizes the percentage appreciation in value (over the past five years) for each of a random sample of 25 houses in Newburg Park. Relative frequency 0.4 0.32 03- 0.2 0.2 0.2 016 0.12 0.1 10 20 40 Appreciation (in percent) Based on the histogram, draw the ogive (the ccumulative relative frequency polygon) for the sample data. Cumulative relative froquency 0.6 0.4 02 0.00 0.00 [0.00 T0.00 0.0 10 20 30 40 30 Appreciation (in percent)
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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