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Suppose that the percentage annual return you obtain when you invest a dollar in gold or the stock market is dependent on the general state of the national economy as indicated below. For example, the probability that the economy will be in "boom" state is 0.15. In this case, if you invest in the stock market your return is assumed to be 25%; on the other hand if you invest in gold when the economy is in a "boom" state your return will be minus 30%. Likewise for the other possible states of the economy. Note that the sum of the probabilities has to be 1--and is.
Based on the expected return, would you rather invest your money in the stock market or in gold? Why?
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If you have a normal distribution of a random variable x, with a mean of 56 and standard deviation of 8: What is the probability that the random variable x will be within plus or minus 1 standard deviation of the mean?
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Assume a very large normally distributed population of scores on a test with mean 77 and standard deviation 7.
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Determine the probability the sample of 40 will have a sales average less than $400,000.
What is the coefficient of determination, and wat is its meaning?
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