Introduction to Statistics and Data Analysis
Introduction to Statistics and Data Analysis
5th Edition
ISBN: 9781305445963
Author: PECK
Publisher: Cengage
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Chapter 1.3, Problem 9E

A building contractor has a chance to buy an odd lot of 5000 used bricks at an auction. She is interested in determining the proportion of bricks in the lot that are cracked and the ref ore unusable for her current project, but she does not have enough time to inspect all 5000 bricks. Instead, she checks 100 bricks to determine which ones are cracked. Describe the population and the sample for this problem.

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9 (Portfolio allocation) Suppose R₁ and R2 are returns of 2 assets and with expected return and variance respectively r₁ and 72 and variance-covariance σ2, 0%½ and σ12. Find −∞ ≤ w ≤ ∞ such that the portfolio wR₁ + (1 - w) R₂ has the smallest risk.

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Introduction to Statistics and Data Analysis

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