Reference no: EM132223583
Statistics Assignment -
Problem 1 - Answer parts a, b, c, and d. Use PHStat Portfolio Analysis.
You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a $1,000 investment in each stock under four different economic conditions has the following probability distribution:
|
Probability
|
Economic Condition
|
Returns
|
|
Stock X
|
Stock Y
|
|
0.1
|
Recession
|
-100
|
50
|
|
0.3
|
Slow growth
|
0
|
150
|
|
0.3
|
Moderate growth
|
80
|
-20
|
|
0.3
|
Fast growth
|
150
|
-100
|
Compute the -
a. expected return for stock X and for stock Y.
b. standard deviation for stock X and for stock Y.
c. covariance of stock X and stock Y.
d. Would you invest in stock X or stock Y? Explain.
Problem 2 - Answer parts a, b and c. Use PHStat Decision Making Portfolio Analysis.
You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a $1,000 investment in each stock under four different economic conditions has the following probability distribution:
|
Probability
|
Economic Condition
|
Returns
|
|
Stock X
|
Stock Y
|
|
0.1
|
Recession
|
-50
|
-100
|
|
0.3
|
Slow growth
|
20
|
50
|
|
0.4
|
Moderate growth
|
100
|
130
|
|
0.2
|
Fast growth
|
150
|
200
|
Compute the -
a. expected return for stock X and for stock Y.
b. standard deviation for stock X and for stock Y.
c. Would you invest in stock X or stock Y? Explain.
Problem 3 - Answer parts a, b and c, table E.2 included. Use normal Procedure in PHStat.
Given a standardized normal distribution (with a mean of 0 and a standard deviation of 1, as in Table E.2), what is the probability that
a. Z is less then 1.57?
b. Z is greater than 1.84?
c. Z is between 1.57 and 1.84
d. Z is less than 1.57 or greater than 1.84?
Problem 4 - Answer parts a, b and c, use normal Procedure in PHStat.
In 2014, the per capita consumption of bottled water in the United States was reported to be 34 gallons. Assume that the per capita consumption of bottled water in the United States is approximately normally distributed with a mean of 34 gallons and a standard deviation of 10 gallons.
a. What is the probability that someone in the United States consumed more than 33 gallons of bottled water in 2014?
b. What is the probability that someone in the United States consumed between 10 and 20 gallons of bottled water in 2014?
c. What is the probability that someone in the United States consumed less than 10 gallons of bottled water in 2014?
d. Ninety-nine percent of the people in the United States consumed less than how many gallons of bottled water?
Problem 5 - Answers parts a and b, use PHStat Confidence Intervals - Estimate for the Mean.
A bottled water distributor wants to estimate the amount of water contained in 1-gallon bottles purchased from a nationally known water bottling company. The water bottling company's specifications state that the standard deviation of the amount of water is equal to 0.02 gallon. A random sample of 50 bottles is selected, and the sample mean amount of water per 1-gallon bottle is 0.995 gallon.
a. Construct a 99% confidence interval estimate for the population mean amount of water included in a 1-gallon bottle.
b. On the basis of these results, do you think that the distributor has a right to complain to the water bottling company? Why?
c. Must you assume that the population amount of water per bottle is normally distributed here? Explain.
d. Construct a 95% confidence interval estimate. How does this change your answer to (b)?
Textbook - Statistics for Managers using Microsoft Excel, 8th Ed by Levine, Stephen and Szabat.
Attachment:- Assignment Files.rar