EBK STATISTICS FOR BUSINESS & ECONOMICS
12th Edition
ISBN: 8220100460463
Author: Anderson
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1, Problem 20SE
A survey of 131 investment managers in Barron’s Big Money poll revealed the following:
- 43% of managers classified themselves as bullish or very bullish on the stock market.
- The average expected return over the next 12 months for equities was 11.2%.
- 21% selected health care as the sector most likely to lead the market in the next 12 months.
- When asked to estimate how long it would take for technology and telecom stocks to resume sustainable growth, the managers’ average response was 2.5 years.
- a. Cite two
descriptive statistics . - b. Make an inference about the population of all investment managers concerning the average return expected on equities over the next 12 months.
- c. Make an inference about the length of time it will take for technology and telecom stocks to resume sustainable growth.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
A survey of 137 investment managers in a poll revealed the following.
• 46% of managers classified themselves as bullish or very bullish on the stock market.
• The average expected return over the next 12 months for equities was 11.5%.
• 21% selected health care as the sector most likely to lead the market in the next 12 months.
• When asked to estimate how long it would take for technology and telecom stocks to resume sustainable growth, the managers' average response was 2.8 years.
(a)
Cite two descriptive statistics. (Select all that apply.)
O Of those investment managers surveyed, 46% were bullish or very bullish on the stock market.
V of those investment managers surveyed, 21% selected health care as the sector most likely to lead the market in the next 12 months.
V of those investment managers surveyed, 46% were bullish or very bullish on health care stocks over the next 2.8 years.
O Of those investment managers surveyed, 11.5% expect it would take 12 months for equities to…
The ABC Company is involved in the production and selling of consumer goods, particularly beauty products such as bath soap and shampoo and had registered a positive profit growth for the last 10 years.
However, the current year seems to be different from those years as the company is expecting a decline in profit; which is estimated to be about 70% below the target. The manager now is in a dilemma … asking himself/herself “What happened, why this decline in profit?” The Manager then asked the company Accountant to give him/her the data on sales and advertising cost for the last 10 years – he/she wants these data to determine whether the company can live without advertising, as advertising cost happens to be substantial.
Justify your answer by doing as step-by-step procedure in Correlation Analysis using a 0.05 level of significance.
The data are as follows –
A survey of 137 investment managers in a poll revealed the following.
• 46% of managers classified themselves as bullish or very bullish on the stock market.
• The average expected returm over the next 12 months for egquities was 11.5%.
- 21% selected health care as the sector most likely to lead the market in the next 12 months.
• When asked to estimate how long it would take for technology and telecom stocks to resume sustainable growth, the managers' average response was 2.8 years
(a) Cite two descriptive statistics. (Select all that apply.)
O of those investment managers surveyed, 46% were bulish or very bullish on the stock market.
O of those investment managers surveyed, 21% selected health care as the sector most likely to lead the market in the next 12 months.
D of those investment managers surveyed, 46% were bulish or very bullish on health care stocks over the next 2.8 years.
D of those linvestment managers surveyed, 11.5% expect it would take 12 months for equities to resume…
Chapter 1 Solutions
EBK STATISTICS FOR BUSINESS & ECONOMICS
Ch. 1 - Discuss the differences between statistics as...Ch. 1 - The U.S. Department of Energy provides fuel...Ch. 1 - Refer to Table 1.6. a. What is the average miles...Ch. 1 - Table 1.7 shows data for seven colleges and...Ch. 1 - Consider the data set in Table 1.7 a. Compute the...Ch. 1 - Foreign Affairs magazine conducted a survey to...Ch. 1 - The Kroger Company is one of the largest grocery...Ch. 1 - The FinancialTimes/Harris Poll is a monthly online...Ch. 1 - The Commerce Department reported receiving the...Ch. 1 - The Bureau of Transportation Statistics Omnibus...
Ch. 1 - J.D. Power and Associates conducts vehicle quality...Ch. 1 - The Hawaii Visitors Bureau collects data on...Ch. 1 - Figure 1.8 provides a bar chart showing the amount...Ch. 1 - The following data show the number of rental cars...Ch. 1 - Every year, the U.S. Coast Guard collects data and...Ch. 1 - A manager of a large corporation recommends a...Ch. 1 - A random telephone survey of 1021 adults (aged 18...Ch. 1 - A Bloomberg Businessweek North American subscriber...Ch. 1 - A survey of 131 investment managers in Barrons Big...Ch. 1 - A seven-year medical research study reported that...Ch. 1 - The Nielsen Company surveyed consumers in 47...Ch. 1 - Pew Research Center is a nonpartisan polling...Ch. 1 - A sample of midterm grades for five students...Ch. 1 - Table 1.8 shows a data set containing information...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- Morning House is a mail-order firm which carries a wide range of rather expensive art objects for homes and offices. It operate problems would be greatly reduced. Since it takes approximately six weeks to receive 90% of the response to a given campaign, an accurate prediction of total sales made as late as the end of the first week of receiving orders would be useful. The first week’s sales and total sales of the last 12 campaigns of the firm are shown below. Can the first week’s sales be used to predict total sales? First week’s Total Campaign Sales Sales 1 32 167 2 20 91 3 114 560 4 66 335 5 18 70 6 125 650 7 83 401 8 65 320 9 94 470 10 5 15 11 39 210 12 50 265 --------------------------------------------arrow_forwardA FiveThirtyEight.com article reports that “Horror movies get nowhere near as much draw at the box office as the big-time summer blockbusters or action/adventure movies ... but there’s a huge incentive for studios to continue pushing them out. The return-on-investment potential for horror movies is absurd.” To investigate how the return-on-investment compares between genres and how this relationship has changed over time, an introductory statistics student fit a model predicting the ratio of gross revenue of movies from genre and release year for 1,070 movies released between 2000 and 2018. Using the plots given below, determine if this regression model is appropriate for these dataarrow_forwardYou decide to invest in stock in a particular type of company and set the guideline that you will only buy stock in companies that are ranked in the 80th percentile or above in terms of dividends paid in the previous year. You are looking at a company that ranked 7 out of 450 companies that paid dividends in 2019. a.Will this company qualifies for your portfolio? b.If you had the data on the total dividends paid by each of the 450 companies, which measure of average would be the most meaningful – mean, median, midrange, or mode? Explainarrow_forward
- Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 74 stocks traded on the NYSE that day showed that 19 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of α=0.01α=0.01.What is the test statistic for this sample? (Report answer accurate to three decimal places.) test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.) p-value =arrow_forwardMany investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 74 stocks traded on the NYSE that day showed that 20 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of α=0.02α=0.02.What is the test statistic for this sample? (Report answer accurate to four decimal places.) test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.) p-value = The p-value is... less than (or equal to) αα greater than αα This test statistic leads to a decision to... reject the null accept the null…arrow_forwardMany investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 74 stocks traded on the NYSE that day showed that 11 went up. You are conducting a study to see if the proportion of stocks that went up is significantly less than 0.3. You use a significance level of a = 0.05. What is the test statistic for this sample? (Report answer accurate to three decimal places.) test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.) p-value = The p-value is... less than (or equal to) a O greater than a This test statistic leads to a decision to... O reject the null O accept the null O fail…arrow_forward
- Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 75 stocks traded on the NYSE that day showed that 36 went up.You are conducting a study to see if the proportion of stocks that went up is significantly more than 0.3. You use a significance level of α=0.001What is the test statistic for this sample? (Report answer accurate to three decimal places.)test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.)p-value =arrow_forwardMany investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 71 stocks traded on the NYSE that day showed that 24 went up. You are conducting a study to see if the proportion of stocks that went up is is significantly more than 0.3. You use a significance level of a = 0.01. What is the test statistic for this sample? (Report answer accurate to three decimal places.) test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.) p-value = The p-value is... less than (or equal to) a greater than a This test statistic leads to a decision to... reject the null accept the null fail to…arrow_forwardMany investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 71 stocks traded on the NYSE that day showed that 24 went up. You are conducting a study to see if the proportion of stocks that went up is is significantly more than 0.3. You use a significance level of α = 0.01 α = 0.01 . What is the test statistic for this sample? (Report answer accurate to three decimal places.) What is the p-value for this sample? (Report answer accurate to four decimal places.) The p-value is... less than (or equal to) α? OR greater than α? The test statistic rejects, accepts, or fails to reject null? As such, the final conclusion is…arrow_forward
- Total DVD and Blu-ray disc sales in 2009 were $8.72 billion. For the purposes of this problem, you will combine DVD and Blue-ray disk sales into one category of DVD sales. A study by In-Stat predicted that "physical disc sales will decline by $4.7 billion by 2014," and that "streaming, on the other hand, should grow from its current $2.2 billion to $6.3 billion over the same time period (2009–2014). d. Write an equation that represents the linear model for streaming videos. Let S = the total sales of streaming videos in billions of dollars, and t = the number of years after 2009. e. In what year do the models predict streaming video sales to exceed DVD sales?arrow_forwardMany investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 73 stocks traded on the NYSE that day showed that 10 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of α=0.10α=0.10.What is the test statistic for this sample? Use ˆpp^ rounded to 4 decimal places. (Report answer accurate to 4 decimal places.)What is the p-value for this sample? (Report answer accurate to 4 decimal places.) This p-value leads to a decision to... reject the null accept the null fail to reject the null As such, the final conclusion is that...…arrow_forwardMany investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 73 stocks traded on the NYSE that day showed that 34 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly more than 0.3. You use a significance level of α=0.01α=0.01.What is the test statistic for this sample? (Report answer accurate to three decimal places.)test statistic =arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSON
The Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. Freeman
Introduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman
MATLAB: An Introduction with Applications
Statistics
ISBN:9781119256830
Author:Amos Gilat
Publisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...
Statistics
ISBN:9781305251809
Author:Jay L. Devore
Publisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...
Statistics
ISBN:9781305504912
Author:Frederick J Gravetter, Larry B. Wallnau
Publisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...
Statistics
ISBN:9780134683416
Author:Ron Larson, Betsy Farber
Publisher:PEARSON
The Basic Practice of Statistics
Statistics
ISBN:9781319042578
Author:David S. Moore, William I. Notz, Michael A. Fligner
Publisher:W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:9781319013387
Author:David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:W. H. Freeman
Sampling Methods and Bias with Surveys: Crash Course Statistics #10; Author: CrashCourse;https://www.youtube.com/watch?v=Rf-fIpB4D50;License: Standard YouTube License, CC-BY
Statistics: Sampling Methods; Author: Mathispower4u;https://www.youtube.com/watch?v=s6ApdTvgvOs;License: Standard YouTube License, CC-BY