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stodsl. Let ybe a random va portlslo? Let r be a random variable representing an

ID: 3304836 • Letter: S

Question

stodsl. Let ybe a random va portlslo? Let r be a random variable representing annual percent retun for Vangund Totae sonral years, wo have tolmsm represereng mual "turn for vanguard Balanced Index CO0% stock and 40% bond). For the x 14932 417 33 29 -24 -24 11 (a) Compute tbr, t. ty, Ty b) Use the results of part (a) to compute the sample mean, vartance, and standard derviation for x and for yRound your answers to eo decnal (c)Carot..5%dbytee itrval around the man, for ndues and also formas(Rand you aseen to two aons ) Lower Limit Use the inbervals to compare the two funds af the stock fund the stock fund fall thone of the balanced fund o the talanced tund the two funds has lower ria he funds har

Explanation / Answer

Solution:

a)

x

y

x2

y2

1

9

1

81

0

-1

0

1

12

8

144

64

14

17

196

289

17

23

289

529

33

9

1089

81

29

15

841

225

-24

-6

576

36

-24

-5

576

25

-11

-4

121

16

Total

47

65

3833

1347

Sum of x = 47 Sum of x2 = 3833

Sum of y = 65 Sum of y2 = 1347

b)We find all values using excel,

x

y

Mean

4.7

6.5

Sample Variance

401.3444

102.7222

Standard Deviation

20.03358

10.1352

c) 75% Chebyche's can found as

(xbar – 2*s) , (xbar + 2*s) = -35.37 , 44.77


(ybar – 2*s) , (ybar + 2*s) = -13.77 , 26.77

75% of the return for the balanced fund fall within a narrower range than those of the stock fund.

d) Formula CV = (s/xbar) * 100

= 426%

CV = (s/ybar) * 100

= 156%

Done

x

y

x2

y2

1

9

1

81

0

-1

0

1

12

8

144

64

14

17

196

289

17

23

289

529

33

9

1089

81

29

15

841

225

-24

-6

576

36

-24

-5

576

25

-11

-4

121

16

Total

47

65

3833

1347