3-79. Simplot Agri-Chemical has decided to implement a new incentive system for the managers of its three plants. The plan calls for a bonus to be paid next month to the manager whose plant has the greatest relative improvement over the average monthly production volume. The following data reflect the historical production volumes at the three plants: Plant 1 Plant 2 Plant 3 p. = 700 a. = 2,300 p. = 1,200 0:200 0:350 0:30 At the close of next month, the monthly output for the three plants was Plant 1 = 810 Plant 2 = 2,600 Plant 3 = 1,320 Suppose the division manager has awarded the bonus to the manager of Plant 2 since her plant increased its production by 300 units over the mean, more than that for any of the other managers. Do you agree with the award of the bonus for this month? Explain, using the appropriate statistical measures to support your position. 3-80. According to the annual report issued by Wilson & Associates, an investment rm in Bowling Green, the stocks in its Growth Fund have generated an average return of 8% with a standard deviation of 2%. The stocks in the Specialized Fund have generated an average return of 18% with a standard deviation of 6%. a. Based on the data provided, which of these funds has exhibited greater relative variability? Use the proper statistical measure to make your determination. b. Suppose an investor who is very risk-averse is interested in one of these two funds. Based strictly on relative variability, which fund would you recommend? Discuss. c. Suppose the distributions for the two stock funds had a bell-shaped distribution with the means and standard deviations previously indicated. Which fund appears to be the best investment, assuming future returns will mimic past returns? Explain