# Question

A securities analyst wants to estimate the average percentage of institutional holding of all publicly traded stocks in the United States. The analyst believes that stocks traded on the three major exchanges have different characteristics and therefore decides to use stratified random sampling. The three strata are the New York Stock Exchange (NYSE), the American Exchange (AMEX), and the Over the Counter (OTC) exchange. The weights of the three strata, as measured by the number of stocks listed in each exchange, divided by the total number of stocks, are NYSE, 0.44; AMEX, 0.15; OTC, 0.41. A total random sample of 200 stocks is selected, with proportional allocation. The average percentage of institutional holdings of the subsample selected from the issues of the NYSE is 46%, and the standard deviation is 8%.

The corresponding results for the AMEX are 9% average institutional holdings and a standard deviation of 4%, and the corresponding results for the OTC stocks are 29% average institutional holdings and a standard deviation of 16%.

a. Give a stratified estimate of the mean percentage of institutional holdings per stock.

b. Give the standard error of the estimate in a.

c. Give a 95% confidence interval for the mean percentage of institutional holdings.

The corresponding results for the AMEX are 9% average institutional holdings and a standard deviation of 4%, and the corresponding results for the OTC stocks are 29% average institutional holdings and a standard deviation of 16%.

a. Give a stratified estimate of the mean percentage of institutional holdings per stock.

b. Give the standard error of the estimate in a.

c. Give a 95% confidence interval for the mean percentage of institutional holdings.

## Answer to relevant Questions

The following data are the total 1-year return, in percent, for 10 midcap mutual funds: 0.7, 0.8, 0.1, -0.7, -0.7, 1.6, 0.2, -0.5, -0.4, -1.3 Find the median and the 20th, 30th, 60th, and 90th percentiles. A tire manufacturer maintains strict quality control of its tire production. This entails frequent sampling of tires from large stocks shipped to retailers. Samples of tires are selected and run continuously until they are ...A company has 2,100 employees belonging to the following groups: production, 1,200; marketing, 600; management, 100; other, 200. The company president wants to obtain an estimate of the views of all employees about a certain ...There are 602 aerobics and fitness centers in Japan (up from 170 five years ago). Adidas, the European maker of sports shoes and apparel, is very interested in this fast growing potential market for its products. As part of ...What is a hit ratio? Will a hit ratio of 67% be sufficient when one group has 100 observations, another group has 200 observations, and the ratio of these groups is believed to reflect their ratio in the population? Explain.Post your question

0