# Question: The Barron s Big Money Poll asked 131 investment managers across

The Barron's Big Money Poll asked 131 investment managers across the United States about their short-term investment outlook (Barron's, October 28, 2002). Their responses showed 4% were very bullish, 39% were bullish, 29% were neutral, 21% were bearish, and 7% were very bearish. Let x be the random variable reflecting the level of optimism about the market. Set x = 5 for very bullish down through x = 1 for very bearish.

a. Develop a probability distribution for the level of optimism of investment managers.

b. Compute the expected value for the level of optimism.

c. Compute the variance and standard deviation for the level of optimism.

d. Comment on what your results imply about the level of optimism and its variability.

a. Develop a probability distribution for the level of optimism of investment managers.

b. Compute the expected value for the level of optimism.

c. Compute the variance and standard deviation for the level of optimism.

d. Comment on what your results imply about the level of optimism and its variability.

## Answer to relevant Questions

The American Association of Individual Investors publishes an annual guide to the top mutual funds (The Individual Investor's Guide to the Top Mutual Funds, 22e, American Association of Individual Investors, 2003). The total ...The probability distribution for the random variable x follows. x f(x) 20 ......... .20 25 ......... .15 30 ......... .25 35 ......... .40 a. Is this probability distribution valid? Explain. b. What is the probability ...According to the Sleep Foundation, the average night's sleep is 6.8 hours (Fortune, March 20, 2006). Assume the standard deviation is .6 hours and that the probability distribution is normal. a. What is the probability that ...CondÃ© Nast Traveler publishes a Gold List of the top hotels all over the world. The Broadmoor Hotel in Colorado Springs contains 700 rooms and is on the 2004 Gold List (CondÃ© Nast Traveler, January 2004). Suppose ...A simple random sample of 5 months of sales data provided the following information: a. Develop a point estimate of the population mean number of units sold per month. b. Develop a point estimate of the population standard ...Post your question