weight watchers before-after According to Investment Digest (\"Diversification a

Question

weight watchers before-after According to Investment Digest ("Diversification and the Risk/Reward Relationship", Winter 1994, 1-3), the mean of the annual return for common stocks from 1926 to 1992 was 16.5%, and the standard deviation of the annual return was 19%. In later parts of the question we will ask: What is the probability that the stock returns are greater than 0%? What is the probability that the stock returns are less than 18%? For this part, answer the following question: What is the value of the test statistic (z, t, or F) for each part? (Round to 2 decimal digits)

Explanation / Answer

as we know that z score =(X-mean)/std deviation

a) P(X>0)=1-P(X<0)=1-P(Z<(0-16.5)/19)=1-P(Z<-0.8684)=1-0.1926=0.8074

b) P(X<18) =P(Z<(18-16.5)/19)=P(Z<0.0789)=0.5315

for part a) z=(0-16.5)/19=-0.8684

and por part B) zstat =0.0789

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.