Empirical research on stock market data indicates that over the course of a year, 40% of stocks
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Question:
Empirical research on stock market data indicates that over the course of a year, 40% of stocks go up.
A random sample of 600 stocks is going to be chosen at the beginning of next year. Let p be the proportion of the stocks in the sample that go up over the course of a year.
a). Find the mean of p
b). Find the standard deviation of p.
c). Compute an approximation for
P (p>0.43), which is the probability that more than 43% of the stocks in the sample go up over the course of the year.
Round your answer to 4 decimal places.
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