ZuoTi.Pro
Question

Suppose an analyst wants to use the information on commodity prices introduced in an article Commodity- Indexed Debt(Columbia Journal of World Business). These prices have a mean of 75 cents and a standard deviation of 9 cents. A random sample of 81 commodity prices is selected. ar Describe price for samples of 81 commodity b). What is the probability that the mean of the sample wl be larger than 84 cents? c). What is the probability that the mean of the sample will be between 74 and 76 cents? d). Fifteen percent of the prices are less than what sample mean? the sampling distribution of the mean

math   Statistics-And-Probability   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

a) Let ar{X} denotes the sample mean price for samples of 81 commodity prices.

Here,

92 81 X ~ Ņormal(75,--)or X ~ Normal (75,12)

b) The probability that the mean of the sample will be larger than 84 cents

P(X 84)

X-75 8475 P(

P(Z > 9)

1- P(Z <9)

= 1-4) ( 9 )

= 1 - 1

= 0

c) The probability that the mean of the sample will be between 74 and 76 cents

P(74< X < 76)

P(X < 76)-P(X < 74)

X-75 76-75 P( X-75 74-75

= P(Z leq 1)-P(Z leq -1)

= Phi(1)-Phi(-1)

0.8413450.158655

0,682690

d) To find x such that

P(X < z) = 0.15

Y-75 r- 75 ) = 0.15

T75 ) = 0.15

75

T75 x-í. Ф-1 (0.15)--1.03643

75-1.03643

Rightarrow x = 73.9636 (ans)

0 0
Add a comment
Know the answer?
Add Answer to:
Suppose an analyst wants to use the information on commodity prices introduced in an article "Commodity-...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Suppose an analyst wants to use the information on commodity prices introduced in an article "Commodity-...

    Suppose an analyst wants to use the information on commodity prices introduced in an article "Commodity- Indexed Debt"(Columbia Journal of World Business). These prices have a mean of 75 cents and a standard deviation of 9 cents. A random sample of 81 commodity prices is selected. a). Describe the sampling distribution of the mean price for samples of 81 commodity prices b). What is the probability that the mean of the sample will be larger than 84 cents? c). What...

  • Suppose an analyst wants to use the information on commodity prices introduced in an article "Commodity-...

    Suppose an analyst wants to use the information on commodity prices introduced in an article "Commodity- Indexed Debt"(Columbia Journal of World Business). These prices have a mean of 75 cents and a standard deviation of 9 cents. A random sample of 81 commodity prices is selected. a). Describe the sampling distribution of the mean price for samples of 81 commodity prices b). What is the probability that the mean of the sample will be larger than 84 cents? c). What...

  • Suppose an analyst wants to use the information on commodity prices introduced in an article “Commodity-...

    Suppose an analyst wants to use the information on commodity prices introduced in an article “Commodity- Indexed Debt”(Columbia Journal of World Business). These prices have a mean of 75 cents and a standard deviation of 9 cents. A random sample of 81 commodity prices is selected. a). Describe the sampling distribution of the mean price for samples of 81 commodity prices. b). What is the probability that the mean of the sample will be larger than 84 cents? c). What...

  • Suppose that Randy is an analyst for the bicyling industry and wants to estimate the asking...

    Suppose that Randy is an analyst for the bicyling industry and wants to estimate the asking price of used entry-level road hikes advertised online in the southeastern part of the United States. He obtains a random sample of 13 online advertisements of entry level road bikes. He determines that the mean price for these 13 hikes is =5681.87 and that the sample standard deviation is s = $177.45. He uses this information to construct a 99% confidence interval for p,...

  • Insurance companies track life expectancy information to assist in determining the cost of life insurance policies....

    Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. The insurance company knows that, last year, the life expectancy of its policy holders was 77 years. They want to know if their clients this year have a longer life expectancy, on average, so the company randomly samples some of the recently paid policies to see if the mean life expectancy of policy holders has increased. The insurance company will only change their premium...

  • Use the following information to answer questions 25-31 A traveler wants to know if the prices of hotels are different. She samples 10 cities and finds the prices below. Use a paired-sample t-t...

    Use the following information to answer questions 25-31 A traveler wants to know if the prices of hotels are different. She samples 10 cities and finds the prices below. Use a paired-sample t-test to determine whether the difference between hotel prices is significant at the a 0.01 confidence level Cities Atlanta Boston Chicago Dallas Denver Indianapolis Los Angeles New York City 517 Philadelphia Washington, DC 251 Hyatt Regency prices in dollars Hilton prices in dollars 90 273 204 303 189...

  • 07 sampling for review-SET 1 FOR POSTING 3 . 12 QUESTION 1 - TESTING WEATHER STATIONS...

    07 sampling for review-SET 1 FOR POSTING 3 . 12 QUESTION 1 - TESTING WEATHER STATIONS FOR MARS A company has signed a contract to develop a "weather station" for use on Mars. It will continually measure temperature and wind speed. It must work in extreme cold and in the presence of fine dust, for one Martian year. The company wants to test its design, by building several prototypes, and subjecting the prototypes in a lab to conditions similar to...

  • - 07 sampling 's for review-SET 1 FOR POSTING.pdf 0 3 . 12 QUESTION 1 -...

    - 07 sampling 's for review-SET 1 FOR POSTING.pdf 0 3 . 12 QUESTION 1 - TESTING WEATHER STATIONS FOR MARS A company has signed a contract to develop a "weather station” for use on Mars. It will continually measure temperature and wind speed. It must work in extreme cold and in the presence of fine dust, for one Martian year. The company wants to test its design, by building several prototypes, and subjecting the prototypes in a lab to...

  • 1) Answer the question True or False. 1) Nonparametric methods focus on the location of the...

    1) Answer the question True or False. 1) Nonparametric methods focus on the location of the probability distribution, rather than on specific parameters of the population. A) True B) False 2) Nonparametric tests are useful for qualitative data that can be ranked. A) True B) False 3) The sign test provides inferences about the population median rather than the population mean. A) True B) False 4) For a sign test to be valid, a large sample must be selected from...

  • Question 41 2 pts A software company is developing a new computer game. The manager wants...

    Question 41 2 pts A software company is developing a new computer game. The manager wants to know what effect the frequency at which opponents are released by the computer has on the length of time players survive in the game. A large group of playtesters is available, most of whom already have some experience playing the new game, and each is randomly allocated to play the game with a different opponent release frequency Data was collected for the variables...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT