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In: Statistics and Probability

The Wall Street Journal reported that long term Treasury bonds had a mean return of 24.03%...

The Wall Street Journal reported that long term Treasury bonds had a mean return of 24.03% in 2008. Assume that the returns for the long term Treasury bonds were distributed as a normal random variable, with a mean of 24.03 and a standard deviation of 10. If you select an individual Treasury bond from this population, what is the probability that it would have a return of...

a. less than 0 (a loss)?

b. between 10 and 20 ?

c. greater than 10 ?

If you select a random sample of 4 Treasure bonds from this population, what is the probability that the sample would have a mean return of...

d. less than 0 (a loss)?

e. between 10 and 20 ?

f. greater than 10 ?

g. Compare your results in parts (d) through (f) to those in parts (a) through (c)

Can you show how this is done in Excel.

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orchestra answered 1 year ago
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