Basic Business Statistics, Student Value Edition
Basic Business Statistics, Student Value Edition
14th Edition
ISBN: 9780134685113
Author: Mark L. Berenson, David M. Levine, David F. Stephan, Kathryn Szabat
Publisher: PEARSON
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Chapter 3, Problem 40PS

Consider a population of 1.024 mutual funds that primarily invest in large companies. You have determined that μ , the mean one-year total percentage return achieved by all the funds, is 8.20 and that σ , the standard deviation. is 2.75.

a. According to the empirical rule what percentage of these funds is expected to be within ± 1 standard deviation of the mean?

b. According to the empirical rule. what percentage of these funds is expected to be within ± 2 standard deviations of the mean?

c. According to Chebyshev’s theorem. what percentage of these funds is expected to be within ± 1 ,   ± 2  or  ± 3 standard deviations of the mean?

d. According to Chebyshev’s theorem, at least 93.75 % of these funds are expected to have one-year total returns between what two amounts?

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Chapter 3 Solutions

Basic Business Statistics, Student Value Edition

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