Reference no: EM1312088
Estimating probability based on normal and binomial distribution
1. Let X be a random variable distributed as Normal (5.4). Find the probabilities of the following events;
a) P(X ≤ 6)
b) P(X > 4).
c) p([X - 5] > 1)
2. Much is made of the fact that certain mutual funds outperform the market year after year (that is, the return from holding shares in the mutual fund is higher than the return from holding a portfolio such as the S & P 500). For concreteness, consider a 10-year period and let the population be the 4,170 mutual funds reported in The Wall Street Journal on January 1, 1995. By saying that performance relative to the market is random, we mean that each fund has a 50 - 50 chance of outperforming the market in any year and that performance is independent from year to year.
a) If performance relative to the market is truly random, what is the probability that any particular fund outperforms the market in all 10 years?
b) Find the probability that at least one fund out of 4,170 funds outperforms the market in all 10 years. What do you make of your answer?
c) If you have a statistical package that computes binomial probabilities, find the probability that at least five funds outperform the market in all 10 years.
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Analysis of business cycle
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What is the difference in tension between the two ends
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Types of competition that most firms encounter
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Computation the investment for each year
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Estimating probability on normal and binomial distribution
: If you have a statistical package that computes binomial probabilities, find the probability that at least five funds outperform the market in all 10 years.
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What is the young''s modulus of rope
: A 1500 {rm kg} wrecking ball hangs from a 20 {rm m} long cable. The ball is pulled back until the cable makes the angle of 17.0^circ with vertical.
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Explaining two-tailed two-sample and chi-square
: As it is a 2 _ 2 table, try also two-tailed two-sample z test for ð1 = ð2 and verify that z2 is same as your chi-square statistic. Which test do you favour? Describe why?
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Determine the irr of the project
: Calculation of Arithmetic ,Geometric Mean and NPV and determine the IRR of the project? (Do not include the percent sign (%). Round your answers to 2 decimal places, e.g. 32.16.)
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Demand curve change if m falls
: Graph the demand curve for X given the above information. Elucidate how will the demand curve change if M falls to 35,000.
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