Note- The sum of square of y is wrongly calculated as 3521 in the given calculation over the image of the problem. The correct sum of squares of y is calculated and the whole problem is solved with corrected value as follows.
(a)
(b)
(c)
We know, Chebyshev's inequality is given by
We estimate population mean by corresponding sample mean and population standard deviation by sample standard deviation.
To obtain 75% interval we have
So, 75% Chebyshev interval around mean is given by .
x | y | |
Lower limit | -31.14 | -19.68 |
Upper limit | 54.34 | 41.08 |
Range is in both cases. So, it is directly depending upon value of standard deviation. As we can conclude that 75% of the returns for the balanced fund fall within a narrower range than those of the stock fund.
(d)
Coefficient of variation is defined as
We use sample standard deviation in place of population standard deviation and sample mean in place of population mean.
Since we can conclude that for each unit of return, the balanced fund has lower risk.
We know CV denotes coefficient of variation i.e. the average amount of variation. So, a smaller CV is better because it indicates lower risk per unit of expected return.
If two events A and B are independent, then P(A|B) = P(A) = 0.20 [As occurrence of A is independent of occurrence of B]
During computation of standard deviation, use of sample data or data comprising the entire population matters and the cause is as follows.
Yes. The formula for s is divided by n-1, while the formula for is divided by N.
INUIR 2 MAT 147 S 20 - MAT 147, section 71, Spring 2020 WebAssign x2 reduce...
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