Statistical Techniques in Business and Economics
16th Edition
ISBN: 9780077639723
Author: Lind
Publisher: Mcgraw-Hill Course Content Delivery
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Textbook Question
Chapter 10, Problem 38CE
Listed below is the annual rate of return (reported in percent) for a sample of 12 taxable mutual funds.
Using the .05 significance level, is it reasonable to conclude that the mean rate of return is more than 4.50%?
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Students have asked these similar questions
Suppose the expected return over the next year of an investment follows normal distribution
with mean 15% and standard deviation 20%. Suppose the amount of the investment is
$1,600,000.
a. Find the value at risk (VaR) of the investment at 1%.
b. Interpret the result of (a).
c. Suppose the VaR of the investment at k% is $361,600, what is the value of k?
An investment portfolio contains stocks of a large number of corporations. Over the last year the rates of return on these corporate stocks followed a normal distribution with mean 14.6% and standard deviation 7.5%.
a. For what proportion of these corporations was the rate of return higher than 18%?
b. For what proportion of these corporations was the rate of return negative?
c. For what proportion of these corporations was the rate of return between 10% and 20%?
E Click the icon to view the standard normal table of the cumulative distribution function.
a. The proportion of corporations whose rate of return was higher than 18% is
(Round to four decimal places as needed.)
b. The proportion of corporations whose rate of return was negative is
(Round to four decimal places as needed.)
c. The proportion of corporations whose rate of return was between 10% and 20% is
(Round to four decimal places as needed.)
The table below gives the deviations of a portfolio's annual total returns from its benchmark's annual
returns, for a 6-year period ending in 2011.
Portfolio's Deviations from
Benchmark Return, 2006-2011
2006
-7.62%
2007
2.37%
2008
-9.11%
2009
0.55 %
2010
5.48 %
2011
-1.67%
The arithmetic mean return and median return are closest to:
Mean
A. -2.00%
В. -2.00°
C. -1.67%
D. -1.67%
Median
-4.28%
-1.67°
-0.56°.
0.55%
A. Option A
B. Option B
C. Option C
D. Option D
Chapter 10 Solutions
Statistical Techniques in Business and Economics
Ch. 10 - Heinz, a manufacturer of ketchup, uses a...Ch. 10 - Prob. 2SRCh. 10 - For Exercises 14, answer the questions: (a) Is...Ch. 10 - Prob. 2ECh. 10 - Prob. 3ECh. 10 - For Exercises 14, answer the questions: (a) Is...Ch. 10 - For Exercises 58: (a) State the null hypothesis...Ch. 10 - For Exercises 58: (a) State the null hypothesis...Ch. 10 - For Exercises 58: (a) State the null hypothesis...Ch. 10 - For Exercises 58: (a) State the null hypothesis...
Ch. 10 - The mean life of a battery used in a digital clock...Ch. 10 - Given the following hypotheses: H0:10H1:10 A...Ch. 10 - Given the following hypotheses: H0:=400H1:400 A...Ch. 10 - The Rocky Mountain district sales manager of Rath...Ch. 10 - The management of White Industries is considering...Ch. 10 - The mean income per person in the United States is...Ch. 10 - Most air travelers now use e-tickets. Electronic...Ch. 10 - A machine is set to fill a small bottle with 9.0...Ch. 10 - Given the following hypotheses: H0:20H1:20 A...Ch. 10 - Given the following hypotheses: H0:=100H1:100 A...Ch. 10 - The amount of water consumed each day by a healthy...Ch. 10 - The liquid chlorine added to swimming pools to...Ch. 10 - A Washington, D.C., think tank announces the...Ch. 10 - Hugger Polls contends that an agent conducts a...Ch. 10 - Prob. 5SRCh. 10 - Refer to Table 104 and the example just completed....Ch. 10 - Prob. 22ECh. 10 - According to the local union president, the mean...Ch. 10 - Rutter Nursery Company packages its pine bark...Ch. 10 - A new weight-watching company, Weight Reducers...Ch. 10 - Dole Pineapple Inc. is concerned that the 16-ounce...Ch. 10 - According to a recent survey, Americans get a mean...Ch. 10 - A statewide real estate sales agency, Farm...Ch. 10 - According to the Census Bureau, 3.13 people reside...Ch. 10 - A recent article in Vitality magazine reported...Ch. 10 - According to a study by the Federal Reserve Board,...Ch. 10 - A recent article in The Wall Street Journal...Ch. 10 - A recent study revealed the typical American...Ch. 10 - The postanesthesia care area (recovery room) at...Ch. 10 - www.golfsmith.com receives an average of 6.5...Ch. 10 - During recent seasons, Major League Baseball has...Ch. 10 - Watch Corporation of Switzerland claims that its...Ch. 10 - Listed below is the annual rate of return...Ch. 10 - Many grocery stores and large retailers such as...Ch. 10 - For a recent year, the mean fare to fly from...Ch. 10 - The publisher of Celebrity Living claims that the...Ch. 10 - A United Nations report shows the mean family...Ch. 10 - The cost of weddings in the United States has...Ch. 10 - The American Water Works Association reports that...Ch. 10 - A cola-dispensing machine is set to dispense 9.00...Ch. 10 - The owners of the Westfield Mall wished to study...Ch. 10 - The following null and alternate hypotheses are...Ch. 10 - An insurance company, based on past experience,...Ch. 10 - A national grocers magazine reports the typical...Ch. 10 - Refer to the Real Estate data, which report...Ch. 10 - Refer to the Baseball 2012 data, which report...Ch. 10 - Prob. 52DE
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- A sample of 12 senior executives found the following results for percentage of total compensation derived from bonus payments:15.8 17.3 28.4 18.2 15.0 24.713.1 10.2 29.3 34.7 16.9 25.3a. Compute the sample median.b. Compute the sample mean.arrow_forwardListed below is the annual rate of return (reported in percent) for a sample of 12 taxable mutual funds. 4.63 4.15 4.76 4.70 4.65 4.52 4.70 5.06 4.42 4.51 4.24 4.52 Using the 0.05 significance level, is it reasonable to conclude that the mean rate of return is more than 4.50%? 1.What is the decision rule? (Round your answer to 3 decimal places.) 2.Compute the value of the test statistic. (Round your answer to 3 decimal places.) 3.What is your decision regarding H0?arrow_forwardThe table shows the annual compensation of 40 randomly chosen CEOs (millions of dollars). 5.35 1.93 192.00 16.07 17.55 13.00 24.93 8.19 23.62 7.60 27.08 6.38 19.41 4.63 82.81 26.67 31.47 12.83 20.16 6.16 Click here for the Excel Data File Percent (a) Select the correct histogram for the above data. Histogram A Histogram 35 30 25 20 15 10 5 0 40 60 80 14.57 10.32 8.88 9.86 8.89 100 120 Compensation 5.42 3.26 15.58 2.49 5.98 1.73 4.53 0.79 4.46 1.38 140 160 180 4.12 5.56 5.94 2.23 4.05 Percent 35 30 25 20 15 10 5 0 Histogram B Histogram 80 100 120 Compensation 140 160 180 Percent 35 30 25 20 15 10 5 0 20 40 Histogram C Histogram 80 100 120 Compensationarrow_forward
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