1. Suppose the returns of a particular group of mutual funds are normally distributed with a...

1. Suppose the returns of a particular group of mutual funds are normally distributed with a mean of 9.7% and a standard deviation of 3.8%. If the manager of a particular fund wants to be sure that his fund is NOT in the bottom 25% of funds with the lowest return, what return must his fund have? (please round your answer to 2 decimal places).

2. Suppose the following data show the prices of 4 cars with similar characteristics that sold at a recent auction (in thousands of dollars): 6.6, 7.3, 13.7, 6. Calculate the standard deviation of the sample of selling prices. (please express your answer using 2 decimal places).

3. Suppose the profit the Honda dealership makes on the next 5 Accords it sells are: 433, 1,002, 752, 676, 1,322. What is the average profit on these cars?

4. In a sample of 84 people who have had strokes, the average cholesterol level was 254 with a standard deviation of 49.3. In order to test the hypothesis (at the 10% level of significance) that the average cholesterol level of people who have had strokes was at least 240, what is the critical value? (please round your answer to 2 decimal places)

Solutions

Expert Solution

orchestra answered 1 year ago

Next > < Previous

Related Solutions

The annual returns from a particular mutual fund are believed to be normally distributed. The following...

The annual returns from a particular mutual fund are believed to be normally distributed. The following table lists the annual returns for this fund over a 20-year period. Year Return (%) Year Return (%) 1 6.2 11 5.4 2 11.3 12 26.0 3 16.1 13 13.5 4 16.9 14 24.2 5 9.8 15 –1.5 6 18.3 16 1.4 7 11.2 17 15.7 8 –12.1 18 11.8 9 19.2 19 1.9 10 17.6 20 17.8 a) Determine the mean and standard...

The quarterly returns for a group of 59 mutual funds with a mean of 3.8% and...

The quarterly returns for a group of 59 mutual funds with a mean of 3.8% and a standard deviation of 6.9% can be modeled by a Normal model. Based on the model N(0.038,0.069), what are the cutoff values for the a) highest 10% of these funds? b) lowest 30%? c) middle 20%? d) highest 70%?

The quarterly returns for a group of 74 mutual funds with a mean of 1.1% and...

The quarterly returns for a group of 74 mutual funds with a mean of 1.1% and a standard deviation of 4.9% can be modeled by a Normal model. Based on the model N(0.011,0.049), what are the cutoff values for the a) highest 20% of these funds? b) lowest 40%? c) middle 80%? d) highest 60%?

The quarterly returns for a group of 58 mutual funds with a mean of 3.4% and...

The quarterly returns for a group of 58 mutual funds with a mean of 3.4% and a standard deviation of 4.3% can be modeled by a Normal model. From these funds, find the cutoff return value(s) that would separate the a) highest 30%. b) lowest 40%. c) middle 60%. d) highest 60%. a) Select the correct choice and fill in any answer boxes in your choice below. (Round to two decimal places as needed.) A. nothing%less thanxless than nothing%...

Suppose that the returns on an investment are normally distributed with an expected return of 8%...

Suppose that the returns on an investment are normally distributed with an expected return of 8% and standard deviation of 4%. What is the likelihood of making a negative return? (Hint: the area under a curve for 1 std dev is 34.13%, 2 std dev is 47.73% and 3 std dev is 49.87%). A. 47.73% B. 34.13% C. 15.87% D. 2.27%

Suppose that scores on a particular test are normally distributed with a mean of 140 and...

Suppose that scores on a particular test are normally distributed with a mean of 140 and a standard deviation of 16. What is the minimum score needed to be in the top 20% of the scores on the test? Carry your intermediate computations to at least four decimal places, and round your answer to one decimal place.

Suppose the returns on an asset are normally distributed. The historical average annual return for the...

Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 7.3 percent and the standard deviation was 8.4 percent. What is the probability that your return on this asset will be less than –4.5 percent in a given year? Use the NORMDIST function in Excel® to answer this question. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Probability 8.0 % What range...

Suppose the returns on an asset are normally distributed. The historical average annual return for the...

Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 6.7 percent and the standard deviation was 12.6 percent. What range of returns would you expect to see 95 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)...

Suppose the returns on an asset are normally distributed. The historical average annual return for the...

Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 5.9 percent and the standard deviation was 10.5 percent. a. What is the probability that your return on this asset will be less than –7.3 percent in a given year? Use the NORMDIST function in Excel® to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What range...

Suppose the life of a particular brand of calculator battery is approximately normally distributed with a...

Suppose the life of a particular brand of calculator battery is approximately normally distributed with a mean of 75 hours and a standard deviation of 9 hours. a. What is the probability that a single battery randomly selected from the population will have a life between 70 and 80 hours? P(70 ≤ x ≤80)equals=0.4215 (Round to four decimal places as needed.) b. What is the probability that 4 randomly sampled batteries from the population will have a sample mean life...

Subjects