Exercise 23 proposes modeling quarterly returns of a group of mutual funds with N(0.062, 0.018). The manager of this group of funds would like to flag any fund whose return is unusually low for a quarter. What level of return would you consider to be unusually low? Explain.
Answer to relevant QuestionsA survey of 200 middle managers showed a distribution of the number of hours of exercise they participated in per week with a mean of 3.66 hours and a standard deviation of 4.93 hours. a) According to the Normal model, what ...The police department of a major city needs to update its budget. For this purpose, they need to under-stand the variation in their fines collected from motorists for speeding. As a sample, they recorded the speeds of cars ...You’re thinking about getting two dogs and a cat. Assume that annual veterinary expenses are independent and have a Normal model with the means and standard deviations described in Exercise 52. a) Define appropriate ...Vitamin D is essential for strong, healthy bones. Although the bone disease rickets was largely eliminated in England during the 1950s, some people there are concerned that this generation of children is at increased risk ...An incoming MBA student took placement exams in economics and mathematics. In economics, she scored 82 and in math 86. The overall results on the economics exam had a mean of 72 and a standard deviation of 8, while the mean ...
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