Suppose that a mean of asset price is $50 and standard-deviation would be $1.51. If we...
4. Suppose that a mean of asset price is $50 and standard-deviation would be $1.51. If we assume that the change in the asset price is normally distributed, we can be 90% certain that the asset price will be between? 5. Suppose that we back-test a value at risk model using 1,000 days of data. The value at risk confidence level is 99% and we observe 15 exceptions. Should we reject the model at the 5% confidence level?
Suppose 2 assets are jointly normally distributed with mean asset 1 = m1, mean asset 2 = m2, standard deviation asset 1 = s, st. dev. asset 2 = s and correlation between asset 1 and 2 = r12. Note that the standard deviations of the two assets are the same. What is the portfolio standard deviation if we invest half of our wealth in asset 1 and half of our wealth in asset 2? A. .5*s^2+.5*s^2+2*r12*s^2 B. .5*s+.5*s+ r12*s^2...
Scores on a test are normally distributed with a mean of 70 and standard deviation of 10. Applying the Empirical Rule, we would expect the middle 95% of scores to fall between what two values? 40 and 100 50 and 90 55 and 85 60 and 80 65 and 75
Suppose that pizza delivery times are normally distributed with a population standard deviation of 6 minutes. A random sample of 50 pizza delivery restaurants is taken and has a sample mean delivery time of 36 minutes. Construct a 90% confidence interval for the population mean delivery time. What is the sample mean? 6 1.87 36 1.64 What is the sample size? 8.33 90 50 36 What is the population standard deviation? 0.85 50 36 6 What is the confidence level?...
suppose there is a normally distributed population with a mean of 250 and a standard deviation of 50. If xbar is the average of a sample of 36,find P(xbar<=240)
9.12 Asset income across individuals has a mean (per year of $500 with standard deviation $400. In a simple random sam- ple of 30 individuals, what is the probability that the total amount of asset income will exceed $18,000? 9.16 An investor has three independent sources of income: wages, rents, and interest. Wages are normally distributed, with mean $15,000 and standard deviation $2000. Rents are nor- mally distributed, with mean $2000 and standard deviation $500. Interest is normally distributed, with...
Suppose that the monthly return of stock A is approximately normally distributed with mean µ and standard deviation σ, where µ and σ are two unknown parameters. We want to learn more about the population mean µ, so we collect the monthly returns of stock A in nine randomly selected months. The returns are given (in percentage) as follows: 0.3, 1.3, 1.5, −0.6, −0.2, 0.8, 0.8, 0.9, −1.2 Answer the following questions about the confidence intervals for µ. (a) Construct...
ii) Suppose that the final mark for students in MATH1131 is approximately normally distributed with mean 59 and the standard deviation 7.44. Given that the pass marks is 50, what percentage of MATH1131 stu- dents are expected to pass?
ii) Suppose that the final mark for students in MATH1131 is approximately normally distributed with mean 59 and the standard deviation 7.44. Given that the pass marks is 50, what percentage of MATH1131 stu- dents are expected to pass?
Suppose IQs are normally distributed with a mean of 100 and a standard deviation of 16. a) If one person is randomly selected, what is the probability that the person’s IQ is higher than 90 but lower than 115? b) If eight people are randomly selected, what is the probability that the sample mean IQ is higher than 90 but lower than 115?
Suppose that we would like to create and interval estimate of the mean value of student’s score on a test. We have the following information about 10 randomly selected students, x⎯⎯=75, and s=9. Assume that the test scores for the population of the students are normally distributed. What critical points should we choose to compute a 90% confidence interval? a. ±z.05 b. ±z0.1 c. ±t10,.1 d. ±t9,.05 Weights of a newborn baby have a mean of 3000 grams and a...