EBK STATISTICS FOR BUSINESS & ECONOMICS
12th Edition
ISBN: 9780100460461
Author: Anderson
Publisher: YUZU
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Textbook Question
Chapter 11.1, Problem 7E
To analyze the risk, or volatility, associated with investing in General Electric common stock, a sample of the eight quarterly percent total returns was identified as shown below (Charles Schwab website, January 2012). The percent total return includes the stock price change plus the dividend payment for the quarter.
| 20.0 | −20.5 | 12.2 | 12.6 | 10.5 | −5.8 | −18.7 | 15.3 |
- a. What is the value of the sample
mean ? What is its interpretation? - b. Compute the sample variance and sample standard deviation as measures of volatility for the quarterly return for general electric.
- c. Construct a 95% confidence interval for the population variance.
- d. Construct a 95% confidence interval for the population standard deviation.
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To analyze the risk, or volatility, associated with investing in General Electric common stock, consider a sample of the eight quarterly percent
total returns. The percent total return includes the stock price change plus the dividend payment for the quarter.
Excel File: data11-06.xlsx
20.0 -20.5 12.2 12.6 10.5 -5.8 -18.7 15.3
a. What is the value of the sample mean (to 1 decimal)?
What is its interpretation?
This is the estimate of the-Select your answer-mean percent total return per quarter for General Electric.
b. Compute the sample variance and sample standard deviation as measures of volatility for the quarterly return for General Electric (to 2
decimals).
Variance:
Standard deviation:
c. Construct a 95% confidence interval for the population variance (to 2 decimals). Use Table 11.1.
sots
d. Construct a 95% confidence interval for the population standard deviation (to 2 decimals). Use Table 11.1.
sos
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A stock has monthly returns of 9%, 22%, 15%, and 28%. What is the stock's geometric average
return?
To analyze the risk, or volatility, associated with investing in General Electric common stock, consider a sample of the eight quarterly percent total returns. The percent total return includes the stock price change plus the dividend
payment for the quarter.
Excel File: data11-06.xlsx
20.0
-20,5
12.2
12.6
10.5
-5.8
-18.7
15.3
a. What is the value of the sample mean (to 1 decimal)?
What is its interpretation?
This is the estimate of the
Select your answer
v mean percent total return per quarter for General Electric.
b. Compute the sample variance and sample standard deviation as measures of volatility for the quarterly return for General Electric (to 2 decimals).
Variance:
Standard deviation:
c. Construct a 95% confidence interval for the population variance (to 2 decimals). Use Table 11.1.
d. Construct a 95% confidence interval for the population standard deviation (to 2 decimals). Use Table 11.1.
Chapter 11 Solutions
EBK STATISTICS FOR BUSINESS & ECONOMICS
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