Probability and Statistics for Engineering and the Sciences
9th Edition
ISBN: 9781305251809
Author: Jay L. Devore
Publisher: Cengage Learning
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Textbook Question
Chapter 8, Problem 64SE
Annual holdings turnover for a mutual fund is the percentage of a fund’s assets that are sold during a particular year. Generally speaking, a fund with a low value of turnover is more stable and risk averse, whereas a high value of turnover indicates a substantial amount of buying and selling in an attempt to take advantage of short-term market fluctuations. Here are values of turnover for a sample of 20 large-cap blended funds (refer to Exercise 1.53 for a bit more information) extracted from Morningstar.com:
- a. Would you use the one-sample t test to decide whether there is compelling evidence for concluding that the population mean turnover is less than 100%? Explain.
- b. A normal
probability plot of the 20 ln(turnover) values shows a very pronounced linear pattern, suggesting it is reasonable to assume that the turnover distribution is lognormal. Recall that X has a lognormal distribution if In(X) isnormally distributed withmean value μ and variance σ2. Because μ, is also themedian of the ln(X) distribution, eμ is the median of the X distribution. Use this information to decide whether there is compelling evidence for concluding that the median of the turnover population distribution is less than 100%.
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Chapter 8 Solutions
Probability and Statistics for Engineering and the Sciences
Ch. 8.1 - For each of the following assertions, state...Ch. 8.1 - For the following pairs of assertions, indicate...Ch. 8.1 - For which of the given P-values would the null...Ch. 8.1 - Pairs of P-values and significance levels, , are...Ch. 8.1 - To determine whether the pipe welds in a nuclear...Ch. 8.1 - Let denote the true average radioactivity level...Ch. 8.1 - Before agreeing to purchase a large order of...Ch. 8.1 - Many older homes have electrical systems that use...Ch. 8.1 - Water samples are taken from water used for...Ch. 8.1 - A regular type of laminate is currently being used...
Ch. 8.1 - Prob. 11ECh. 8.1 - A mixture of pulverized fuel ash and Portland...Ch. 8.1 - The calibration of a scale is to be checked by...Ch. 8.1 - A new design for the braking system on a certain...Ch. 8.2 - Let denote the true average reaction time to a...Ch. 8.2 - Newly purchased tires of a particular type are...Ch. 8.2 - Answer the following questions for the tire...Ch. 8.2 - Reconsider the paint-drying situation of Example...Ch. 8.2 - The melting point of each of 16 samples of a...Ch. 8.2 - Lightbulbs of a certain type are advertised as...Ch. 8.2 - The desired percentage of SiO2 in a certain type...Ch. 8.2 - To obtain information on the corrosion-resistance...Ch. 8.2 - Automatic identification of the boundaries of...Ch. 8.2 - Unlike most packaged food products, alcohol...Ch. 8.2 - Body armor provides critical protection for law...Ch. 8.2 - Prob. 26ECh. 8.2 - Show that for any 0, when the population...Ch. 8.2 - For a fixed alternative value , show that () 0 as...Ch. 8.3 - The true average diameter of ball bearings of a...Ch. 8.3 - A sample of n sludge specimens is selected and the...Ch. 8.3 - The paint used to make lines on roads must reflect...Ch. 8.3 - The relative conductivity of a semiconductor...Ch. 8.3 - The article The Foremans View of Quality Control...Ch. 8.3 - The following observations are on stopping...Ch. 8.3 - The article Uncertainty Estimation in Railway...Ch. 8.3 - Have you ever been frustrated because you could...Ch. 8.3 - The accompanying data on cube compressive strength...Ch. 8.3 - A random sample of soil specimens was obtained,...Ch. 8.3 - Reconsider the accompanying sample data on expense...Ch. 8.3 - Polymer composite materials have gained popularity...Ch. 8.3 - A spectrophotometer used for measuring CO...Ch. 8.4 - Prob. 42ECh. 8.4 - Prob. 43ECh. 8.4 - A manufacturer of nickel-hydrogen batteries...Ch. 8.4 - A random sample of 150 recent donations at a...Ch. 8.4 - It is known that roughly 2/3 of all human beings...Ch. 8.4 - The article Effects of Bottle Closure Type on...Ch. 8.4 - With domestic sources of building supplies running...Ch. 8.4 - A plan for an executive travelers club has been...Ch. 8.4 - Each of a group of 20 intermediate tennis players...Ch. 8.4 - A manufacturer of plumbing fixtures has developed...Ch. 8.4 - In a sample of 171 students at an Australian...Ch. 8.5 - Reconsider the paint-drying problem discussed in...Ch. 8.5 - Consider the large-sample level .01 test in...Ch. 8.5 - Consider carrying out m tests of hypotheses based...Ch. 8.5 - Prob. 56ECh. 8 - A sample of 50 lenses used in eyeglasses yields a...Ch. 8 - In Exercise 57, suppose the experimenter had...Ch. 8 - It is specified that a certain type of iron should...Ch. 8 - One method for straightening wire before coiling...Ch. 8 - Contamination of mine soils in China is a serious...Ch. 8 - The article Orchard Floor Management Utilizing...Ch. 8 - The article Caffeine Knowledge, Attitudes, and...Ch. 8 - Annual holdings turnover for a mutual fund is the...Ch. 8 - The true average breaking strength of ceramic...Ch. 8 - Prob. 66SECh. 8 - The incidence of a certain type of chromosome...Ch. 8 - Prob. 68SECh. 8 - Prob. 69SECh. 8 - The Dec. 30, 2009. the New York Times reported...Ch. 8 - When X1, X2,, Xn are independent Poisson...Ch. 8 - An article in the Nov. 11, 2005, issue of the San...Ch. 8 - Prob. 73SECh. 8 - The article Analysis of Reserve and Regular...Ch. 8 - Prob. 75SECh. 8 - Chapter 7 presented a CI for the variance 2 of a...Ch. 8 - Prob. 77SECh. 8 - When the population distribution is normal and n...Ch. 8 - Let X1, X2, Xn be a random sample from an...Ch. 8 - Because of variability in the manufacturing...
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