5

(9) Comput - 75* Chabyshev Interval around the mean for % values and 3lso for values_ (Round Your ensvers t0 1ra dediLower Limlt 36.08719.50Upper Lmit 50.0839.30Use...

Question

(9) Comput - 75* Chabyshev Interval around the mean for % values and 3lso for values_ (Round Your ensvers t0 1ra dediLower Limlt 36.08719.50Upper Lmit 50.0839.30Use- the Intervaks to compani thc two funds, 75% of the returns for thc balanced fund fall wlthin namowcr rngo than thozc stock fund 75%6 ot the returns for stock fund fall withln narrowcr ronge than thost the balanccd fund: 2596 of the returns for the balanced fund fall within Hnmmo re rngc thon thosc the stock fund: 2590 of the rcturn

(9) Comput - 75* Chabyshev Interval around the mean for % values and 3lso for values_ (Round Your ensvers t0 1ra dedi Lower Limlt 36.08 719.50 Upper Lmit 50.08 39.30 Use- the Intervaks to compani thc two funds, 75% of the returns for thc balanced fund fall wlthin namowcr rngo than thozc stock fund 75%6 ot the returns for stock fund fall withln narrowcr ronge than thost the balanccd fund: 2596 of the returns for the balanced fund fall within Hnmmo re rngc thon thosc the stock fund: 2590 of the rcturns for thc stock fund {all withln xlder range than thosc of thc balancod fund: (d) Compute the coctfkcient of variatlon for each fund, (Round your answers thc ncarest wholc numbce) Uzatho cocficienla varatlon compjrc two (Und: For cach unit nrturn thc stock lund hat lower of rctum, the balanced fund hae MG Mek For cuch unit 0f retum, the func? nav Ann I( $ roprcsentreks and rorerents cxpocted rotum , then Nicn bc thought_ Mcieure Of rizk Per unie or @4pecisd rtlmn smaller CV k better bccauso Indicator nighar risk pct crpoctod relurn WEhitar better Dccouic Undiceree Jowier ritk per unit expected nurne



Answers

Annual holdings turnover for a mutual fund is the percentage of a fund's assets that are sold
during a particular year. Generally speaking, a fund with a low value of turnover is more stable
and risk averse, whereas a high value of turnover indicates a substantial amount of buying and
selling in an attempt to take advantage of short-term market fluctuations. Here are values of
turnover for a sample of 20 large-cap blended funds extracted from Morningstar.com:
$\begin{array}{llll}{1.03} & {1.23} & {1.10} & {1.64} & {1.30} \\ {0.94} & {2.86} & {1.05} & {0.75} & {0.09}\end{array}$
$\begin{array}{llll}{1.27} & {1.25} & {0.78} & {1.05} & {0.64} \\ {0.79} & {1.61} & {1.26} & {0.93} & {0.84}\end{array}$
(a) Would you use the one-sample $t$ test to decide whether there is compelling evidence for
concluding that the population mean turnover is less than 100$\% ?$ Explain.
(b) A normal probability plot of the 20 In(turnover) values shows a very pronounced linear
pattern, suggesting it is reasonable to assume that the turnover distribution is lognormal.
Recall that $X$ has a lognormal distribution if $\ln (X)$ is normally distributed with mean value
$\mu$ and standard deviation $\sigma .$ Because $\mu$ is also the median of the $\ln (X)$ distribution, $e^{\mu}$ is the
median of the $X$ distribution. Use this information to decide whether there is compelling
evidence for concluding that the median of the turnover population distribution is less than
100$\% .$

So here we have created, um, cross tabulation, a table for types, off fun and average annual return. Over five years, period Onda, we have calculated the row totals and column totals. Once we have done, we are done with cross tabulation. We can easily we can easily make Quincy distribution out off the cross tabulation. For example, we have created this frequency distribution out of this cross revelation table. And this frequency distribution consists off data on five years average return. So here are the classes. We have just destroyed them in rows. Here in the cross revolution, they are in column. But here, in frequency distribution, we have rested them in rows. And these are the sub particular frequencies. You can see that. And this is the somewhat product. So in the end, we have created African see distribution on, uh, on the data front type, So it is very simple. This is the first column off the cross regulation, and this reconstitution will be the same. And here we will pick this last column, and that's appropriate hair to the So there appears to be a relationship between fun type and average return. Over the past five years because the frequency is not off. Frequency is not roughly the same in each row and each column of the cross tabulation. So there has to be some relationship between the front type and average rate of return over the five years period.

In problem 20. We want to compare to disease four fond of stocks. The first one is named Becks. Well, let balance and it has the mean export equals lying by 58 percent and the standard deviation s equals 14.5%. The other index is $1 balance. Younger balancing, which has export, which equals nine point Oh, two percent. And it has thundered the vision and she equals 12.5% for birdie. We want to compute the coefficient overage for each fund index Confessions operation equals a standard division divided by the meat. For the back solid PW equals 14.5% divided by 9.58% which equals 1.4666 and it equals 146.66 in percentage. The coefficient of variation for the vanguard balance it equals yes, just 12.5 divided by 9.2 percent equals 1.3858 which equals 138.58 in percentage. If we represent this export as return for the fun and it's as the risk because when the standard division increase the risk increases because we don't know the precise return as as increase. We can see that the coefficient of variation, which equals is divided by export, represents the risk per unit return better unit required because we divide as divided by X as we divine speed, for example, or velocity, which equals distance Over time, we can say that about the speed or the velocity as it is the distance but unit type. It's the same concept by comparing the coefficient of variation for both. Or now we can compare the risk oriented return for each and disease. For each index, we can see that this is the least value, which means the Vanguard balance it index as lower risk risk per unit. Better a unit of return, the unit of the tail, then have angered balance. It index is better because it has lower risk. Let's go to Barbie. Part to be we want to compute 75% shipshape interval around the mean for each fund that's recalled. Ships of Interval, we have minimum percentage of one minus one, divided by K Square four. The enter we're K is represents in this equation. New plus or minus cassette. This means this is the percentage food this interview from U minus K Sigma to new plus casing. If we equate this equation to 17 5% this means we have one minus one. Divided by K square equals 0.75 Then okay, equals two. Then to get the interval for each and dicks. Let's start by. That's all it. Mm. We get the intervals from this equation. We have new or export. You can make it for export. Plus or minus cape multiplied by s. The ships have been terrible. Work is for population. And for examples, the back sold it. We have export export equals 9.5. Yeah, person plus or minus. Let's start by the minimum bench or the minimum limit by an escape, which is to have calculated ks two deployed by s of the backs folded 14.5. This is the lower limit. The upper limit is 9.58 plus two multiplied by 14.5. This means the back solid interval is from minus 18.52% two 37.68%. We will do the same for the other index. Vanguard balance it X 9.2 to minus two, multiplied by S 12.5. This is the lower limit, and the upper limit is now in brain or two plus two apply by 12.5. This makes the interval starts from minus 15.98% two. 34.2%. You can see that there is the risk. Export can be negative for both in disease, which means there might be a loss. By comparing the two intervals, we can see that the back solid has a wider interpret and its range is bigger than the bangle. Then, as if I'm good interval or the Bangor Balance, it index the hunger balance balance. It index has lower range and or we can say smaller Interpol four 75% shipshape interval chip show. It's about it is but because it has a smaller Internet than the back sword, and this is the final answer of our problem.

Sue for a whereas to compete coefficient of variance for X on the coefficient of variance. For why? Which for exits, 146.7% and for why it's 138.6% then from this point of view, which fund appears to be better now that point of view is that X bar is a return and s represents the risk. So the coefficient of variants with the least risk is CV of y. So the faint that's the Vanguard Balance index appears to present thus risk per unit of return as the percentage is lower. Now then, for B were asked to compute the 75% Chevy Sev interval. And so we have for pecs in for Vanguard the following negative 18.52% to 37.68%. We also have negative 15.98% to 34.2%. And so what we can say here is that packs will balance presents greater risk for greater return

And this example will be dealing with the normal cumulative distribution function in regards to finance and funds. So the first thing we're asked is whether or not we can assume that our X distribution is normal and the answer is yes. And that's because we're dealing with a sample of 100 and as long as and is greater than or equal to 30 than the central limit theorem applies. Yeah. And we can say X is approximately normal now that we know that we can establish a Z scores and either use the table or calculators to calculate probability. So now we're looking at the X bar which is the average based on a certain number of months. And in the first situation were asked what's going to happen in nine months and what's the probability that our return will be between 1% and 2%. So the first thing I need to do is I need to convert these two Z scores. Now everything is in percentages. So that's nice. I don't have to change it to a decimal so my Z score will be one minus my me now remember my mean is going to be the same as the distribution because it is behaving normally. And my standard deviation for X bar will be the standard deviation Divided by the square root event. So this will be 0.8 Divided by the squared of nine, Which is 0.2667%. So it'll be 1 -1.4%. Technically both of these are percentages Divided by 0.2667%. And when you work that out We have a Z score of negative 1.50 And we'll calculate the Z score for two following the same steps. And when you do that We get 2.2 eight. No, I like to use the calculator on this. You can use your table and you can look up the values in your table and do a little subtraction. Or you can go to the calculator. Second, vars choose number two. In this case we've got negative 1.5, 2.25 Are mean and standard deviation or zero and one because we're using Z scores enter, enter and you can see the probability is approximately .9209. And when we round that, that becomes .9210. Now on the next one, Were asked to look at what happens in 18 months. So now and will be 18. Our men will still be 1.4 but the standard deviation Is now going to be 0.8 divided by the square root of 18. And that's going to give us approximately 0.1886%. And we're still asked about the probability that our average will fall Between one and 2%. So changing this to a Z score, my score minus the mean divided by the standard deviation. That's AZ score of negative 2.12. Then I'm going to change the 2% to its corresponding Z score And that gives us 3.18 using my calculator, then with the Z scores. So second bars too -2.12, three point 18 And this is .982 two or rounded .9823. Yes. Now we're asked to look at what happens to our probability when our standard deviation changes, So at 18 or excuse me, as the population changes and the standard deviation changes. So the square root of 18 gave us a standard deviation of about .1886%, which then gave us a probability of .9823. Here we had nine That gave us a standard deviation of .2, so the smaller population gave us a larger standard deviation, which actually ended up giving us a smaller percent. So the probability will increase as the standard deviation decreases, because dividing by a smaller value will give us a larger result. So we can also say this is because the standard deviation, I'm going to abbreviate decreases as the sample size or the population increases. And then finally, we need to do a little interpretation. So, after 18 months X bar turns out to be more than 2%. Would that shake your confidence in the statement about your mean being 1.4%? So what we're gonna do is we're going to go back and we're going to take the values from the previous problem, we're going to take the 2% result that Z score. And we're going to use this in our calculator to find the probability That Z is actually greater than 3.18. So I want to use the calculator for this. I have to do a little bit of a little bit of a trick number two CDF. So because I'm going greater, my lower bound is 3.18 And then to tell my calculator that I want infinity, I type one and then second comma because there's two little letters that say e up there 9 9. That's the calculators way of recognizing infinity. And this is 7.3. But it has this either the -4. This is like scientific notation. So that means I actually need to move my decimal .4 places to the left. So this is actually the probability that that will occur, and that is so small that it's very unlikely that I that X bar would be greater than or equal to 2%.


Similar Solved Questions

5 answers
Question 61 (3 points)Assuming the reaction goes to completion; what mass of silver metal is recovered by adding excess magnesium to 23.00 mL of 0.886 M AgNO3?Mgls)+ AgNOzlaq) Agls) MgNOzlaq)Your Answer:AnswerQuestion 62 (3 points) Assuming the reaction goes to completion; what mass of mercury (I) chloride is recovered by adding excess mercury nitrate to 17.000 mL of 1.077 M potassium chloride?2 KCIaq) Hgz(NO3)zlaq) 2 KNO3laq) HgzClz(s)Your Answer:Answer
Question 61 (3 points) Assuming the reaction goes to completion; what mass of silver metal is recovered by adding excess magnesium to 23.00 mL of 0.886 M AgNO3? Mgls)+ AgNOzlaq) Agls) MgNOzlaq) Your Answer: Answer Question 62 (3 points) Assuming the reaction goes to completion; what mass of mercury ...
5 answers
Chapter 27_ Problem 01Young' double-slit experiment tne wavelength of light used 471 nm (in vacuum), and thc separation bctwccn thc slits 1.7 10-6 for which 0, (b) the bright fringe for which (c) the dark fringe for which and (d) the bright fringe for whichDetermine the angle that locates (a) the dark fringe(a) NumberUnits(b) NumberUnits(c) NumberUnics(d) NumbcrUnits
Chapter 27_ Problem 01 Young' double-slit experiment tne wavelength of light used 471 nm (in vacuum), and thc separation bctwccn thc slits 1.7 10-6 for which 0, (b) the bright fringe for which (c) the dark fringe for which and (d) the bright fringe for which Determine the angle that locates (a)...
4 answers
10) The function ComputeSum receives positive integer n as the input and returns the value ComputeSum(n) = Ei-1 (j + 2)j2ComputeSum(n) If n I,then Retumn(3) y := ComputeSum(n - [) Return(What is the correct value for the algorithm to return?a. yb. y +n(y + 2)y2 d. y + (n + 2)n?
10) The function ComputeSum receives positive integer n as the input and returns the value ComputeSum(n) = Ei-1 (j + 2)j2 ComputeSum(n) If n I,then Retumn(3) y := ComputeSum(n - [) Return( What is the correct value for the algorithm to return? a. y b. y +n (y + 2)y2 d. y + (n + 2)n?...
5 answers
Jqunu [EWj?p "sajepd [Bup?P Z 01 popunoj SE JJAISUE Inof ssaudxg { Kp SDwf %$ 'X JOJ UQuenba SuIMOIIO 241 JA[OS *0[sppe1d [BLIJPP € 01 papunos jqunu [eWIJ?p se jamsue Jnof ssaudx? pUE xp(€- {-)xHIy reuojuy ouyop o4 p1en[EA] *6
jqunu [EWj?p "sajepd [Bup?P Z 01 popunoj SE JJAISUE Inof ssaudxg { Kp SDwf %$ 'X JOJ UQuenba SuIMOIIO 241 JA[OS *0[ sppe1d [BLIJPP € 01 papunos jqunu [eWIJ?p se jamsue Jnof ssaudx? pUE xp(€- {-)xHIy reuojuy ouyop o4 p1en[EA] *6...
5 answers
Given below: quadratic function Consider the 28 + 161 U =algcbralcally; the vertex (a) Determine algcbralcally vertical ! lintercept = the your paper: (b) Find work on and all 'supporting = Your = answers Write In (he box below: on your paper; anything from the work need to enter instructor You do not 'graded = by your will be HTML Editor) This questionQuestion
given below: quadratic function Consider the 28 + 161 U = algcbralcally; the vertex (a) Determine algcbralcally vertical ! lintercept = the your paper: (b) Find work on and all 'supporting = Your = answers Write In (he box below: on your paper; anything from the work need to enter instructor Yo...
1 answers
Match the differential equation with the direction field labeled (a)-(d). Give a reason for your choice. $$ y^{\prime}=1+x y $$
Match the differential equation with the direction field labeled (a)-(d). Give a reason for your choice. $$ y^{\prime}=1+x y $$...
5 answers
What is the m/z of the base peak in the mass spectrum shown below100LAnswer:CheckNo, that's the molecular ion which gives the molecular weightMarke "otois uomission: O.OO{1This submission SmragedDena
What is the m/z of the base peak in the mass spectrum shown below 100 L Answer: Check No, that's the molecular ion which gives the molecular weight Marke "otois uomission: O.OO{1 This submission Smraged Dena...
5 answers
Caffeine, shown here, is a psychoactive stimulant drug. Write the molecular formula and empirical formula of the compound.
Caffeine, shown here, is a psychoactive stimulant drug. Write the molecular formula and empirical formula of the compound....
1 answers
Solve each equation for the specified variable. (Assume no denominators are $0 .)$ $$ h=-16 t^{2}+v_{0} t+s_{0}, \quad \text { for } t $$
Solve each equation for the specified variable. (Assume no denominators are $0 .)$ $$ h=-16 t^{2}+v_{0} t+s_{0}, \quad \text { for } t $$...
1 answers
Although methane, $\mathrm{CH}_{4},$ and ammonia, $\mathrm{NH}_{3},$ differ in molar mass by only one unit, the boiling point of ammonia is over $100^{\circ} \mathrm{C}$ higher than that of methane (a nonpolar molecule). Explain.
Although methane, $\mathrm{CH}_{4},$ and ammonia, $\mathrm{NH}_{3},$ differ in molar mass by only one unit, the boiling point of ammonia is over $100^{\circ} \mathrm{C}$ higher than that of methane (a nonpolar molecule). Explain....
5 answers
1-d Let=4-0.25 0.5 075] [21[2 Marks]Determine whether S is linear independent in Mz2 (R) under the standard operations_
1-d Let =4-0.25 0.5 075] [21 [2 Marks] Determine whether S is linear independent in Mz2 (R) under the standard operations_...
5 answers
The " length of Iife, in hours, of a drill bit in a mechanical oparalion has Weibull distribution with 024 and p = 60. Find the probability that the bit will fail before 11 hours of usage.The probability is (Round to four decimal places &s needod )
The " length of Iife, in hours, of a drill bit in a mechanical oparalion has Weibull distribution with 024 and p = 60. Find the probability that the bit will fail before 11 hours of usage. The probability is (Round to four decimal places &s needod )...
1 answers
In Exercises $59-66,$ find the critical points, domain endpoints, and local extreme values (absolute and local) for each function. $$y=\left\{\begin{array}{ll}{-x^{2}-2 x+4,} & {x \leq 1} \\ {-x^{2}+6 x-4,} & {x>1}\end{array}\right.$$
In Exercises $59-66,$ find the critical points, domain endpoints, and local extreme values (absolute and local) for each function. $$y=\left\{\begin{array}{ll}{-x^{2}-2 x+4,} & {x \leq 1} \\ {-x^{2}+6 x-4,} & {x>1}\end{array}\right.$$...
5 answers
2qleozerosqleo3qleoqleoSubmitRequest Answer4qleo
2qleo zero sqleo 3qleo qleo Submit Request Answer 4qleo...
5 answers
Question 1915 ptsWhich of the following molecules contains smallest bond angle between two fluorine atomsSiF4BFjCF4KrF4NF]
Question 19 15 pts Which of the following molecules contains smallest bond angle between two fluorine atoms SiF4 BFj CF4 KrF4 NF]...
5 answers
Where does transcription and translation occur in the central dogma? (4 points)franscription happens in the synthesis of the RNA molecule using the DNA strand and translation happens in the synthesis of the polypeptide in the mRNA molecule:What are the places of gene expression for bacteria AND where do they occur in the central dogma? (6 points)What are the places of gene expression for eukaryotes AND where do they occur in the central dogma? (12 points)
Where does transcription and translation occur in the central dogma? (4 points) franscription happens in the synthesis of the RNA molecule using the DNA strand and translation happens in the synthesis of the polypeptide in the mRNA molecule: What are the places of gene expression for bacteria AND wh...

-- 0.018481--