Question

In: Statistics and Probability

The Dow Jones Industrial Average has had a mean gain of 432 pear year with a...

The Dow Jones Industrial Average has had a mean gain of 432 pear year with a standard deviation of 722. A random sample of 40 years is selected. What is the probability that the mean gain for the sample was between 250 and 500?

0.669

0.137

0.331

0.863

Solutions

Expert Solution

Solution :

Given that,

mean = = 432

standard deviation = = 722

n = 40

= 432

  =  (/n) = ( 722 / 40 ) = 114.1582

P ( 250 < x < 500 )

P ( 250 - 432 / 114.1582 ) < ( -   / ) < ( 500 - 432 / 114.1582 )

P ( - 182 / 114.1582 < z < 68 / 114.1582 )

P ( -1.594 < z < 0.596 )

P ( z < 0.596 ) - P ( z < -1.594 )

Using z table

= 0.7244 - 0.0555

= 0.6689

Probability = 0.669

Option 0.669 is correct.

orchestra answered 2 years ago
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