The percent price increase p on a variety of retail food prices over a 1-year period varied
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The percent price increase p on a variety of retail food prices over a 1-year period varied from 5% to 10% in all cases. Because of the distribution of p values, the assumed probability distribution for the next year is
f (X) = 2X 0 ≤ X ≤ 1
Where
For a continuous variable the cumulative distribution F (X) is the integral of f (X) over the same range of the variable. In this case
F (X) = X2 0 ≤ X ≤ 1
(a) Graphically assign RNs to the cumulative distribution, and take a sample of size 30 for the variable. Transform the X values into interest rates.
(b) Calculate the average p value for thesample.
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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