You are looking for an investment opportunity that will provide a yield of at least 10%. You estimate that the returns from the Ford Motor Company stock have normal distribution with mean 12,5% and standard deviation 8.5%. What is the probability of achieving your objective if you buy Ford stock?
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You are looking for an investment opportunity that will provide a yield of at least 10%.
You estimate that the returns from the Ford Motor Company stock have
distribution
What is the probability of achieving your objective if you buy Ford stock?
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- I need help figuring out how to determine the percentage of increase. For each of the following models, state what the expected value of Y is when X = 50. Also, state how the predicted value of Y changes when X increases by 5 units (i.e., a 10% increase). 1. Y = 73 + 10X X=50, y=73+10*50 = 573 Y = 573 Change = 50 units 2. lnY = 4.9 + 0.025X x = 50, y = exp(4.9 + 0.025*50) = 468.7 =exp(0.025*5)=1.13 units. Y = 468.7 Change = 1.13 units 3. Y = -632 + 328(lnX) X = 50, y=-632 + 328*(in50) = 651.1 = 328*In(5) = 527.9 Y = 651.1 Change = 527.9 units 4. lnY = 2.7 + 0.94(lnX) x=50, y=exp(2.7 + 0.94*In50) = 588.3 = exp (0.94*In5) = 4.54 Y = 588.3 Change = 4.54 unitsAmy needs to plan inventory ahead for her business and she needs to know how the demand for her products would be like for the next week. Suppose, based on experience, she knows that the demand for her products follows a normal distribution with a mean of 300 units and and a standard deviation of 60 units. What is the probability, approximately, that Amy will face a demand of less than 180 units? 5% 16% 2.5% 0%Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 50.5 and a standard deviation of 16. The customers with scores in the bottom 5% are described as "risk averse. What is the questionnaire score that separates customers who are considered risk averse from those who ar not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place. U Continue X S Submit Terms of Use | Privacy Center
- The stock price for International Business Machines (IBM) historically has followed an approximately normal distribution (when adjusting for inflation) with a mean of $166.305 and standard deviation of $4.2216. What is the probability that on a selected day the stock price is below $162.5?Cody took his first physics exam and scored an 80. The population mean for this exam is 70, and the standard deviation is 5. What is the probability of selecting a person with a score greater than Cody’s?Suppose a life insurance company sells a $170,000 1-year term life insurance policy to a 20-year-old female for $170. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. The expected value of this policy to the insurance company is $92.48. What is the standard deviation of the value of the life insurance policy? Why is the value so high?
- Q7A book seller has the following schedule of weekly. demand for the book "Elementary Quantitative Methods" No. of copies on demand : Probability : 100 200 300 400 500 .02 .05 .09 .12 .20 .15 Find the expected number of copies demanded per week.Suppose a life insurance company sells a $170,000 1-year term life insurance policy to a 20-year-old female for $300. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. The expected value of this policy to the insurance company is$222.48. What is the standard deviation of the value of the life insurance policy? Why is the value so high? Part 1 The standard deviation of the value of the life insurance is $
- Select one method to filter conditional volatility. Present and interpret descriptive statistics of conditional volatility of (i) overnight returns, (ii) intraday returns, and (iii) total returns.A certain brokerage house wants to estimate the mean daily return on a certain stock. A random sample of 12 days yields the following return percentages.−1.81, 1.54, 1.52, −2.58, −2.3, 0.97, 0.93, −1.06, 1.04, 0.2, −0.63, −2.75 Send data to calculator If we assume that the returns are normally distributed, find a 90% confidence interval for the mean daily return on this stock. Then find the lower limit and upper limit of the 90% confidence interval. Carry your intermediate computations to at least three decimal places. Round your answers to one decimal place. (If necessary, consult a list of formulas.) Lower limit: ? Upper limit: ?Suppose (rounded to the nearest thousand) that the mean cost of a house is $152,000 with a standard deviation of $44,000 in Pittsburgh and that house prices are normally distributed. Between what two prices do the middle 95% of houses fall in Pittsburgh? Find the probability that a house costs less than $100,000. If you are in the market for one of the most expensive 10% of houses, what price range are you exploring?