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11. A set of data yields a sample mean and standard deviation of 24 and 3, respe

ID: 2934970 • Letter: 1

Question

11. A set of data yields a sample mean and standard deviation of 24 and 3, respectively. Applying the Chebyshev’s theorem, the probability that an observation falls between 15 and 33 will be at least

0.50

0.68

0.75

0.89

Mutual Fund X exhibits the annual return rate from 2008 to 2012 in the following MS Excel worksheet:


            
          12To obtain the average annual return growth rate, which of the following will you apply for?

=AVERAGE($B2:$B6)

=AVERAGE($C2:$C6)

=GEOMEAN($B2:$B6)

=GEOMEAN($C2:$C6)

16.

If the population standard deviation ( ) of 100 observations equals 25, then the variance equals

5

625

2,500

62.5

A.

0.50

B.

0.68

C.

0.75

D.

0.89

Explanation / Answer

11. Number of standard deviations between 15 and 24 or 24 or 33 = 9/3 = 3.

Using Chebyshev's theorem, probability is atleast

1 - 1/32 = 1 - 1/9 = 8/9 = 0.89.

This is given in option D.

12. To obtain average annual growth use the formula

D. =GEOMEAN ($C2:$C6)

16. Variance is the square of standard deviation.

252 = 625 which is given in B.

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