He company claims for the past few years the average

Assignment Help Applied Statistics
Reference no: EM13767849

You are considering investing in a company. The company claims for the past few years the average monthly return on such an investment has been $870 with a standard deviation of $50. You sample 30 investors and determine the sample average return to be $855. Using a .05 level of significance would you conclude that the true average return is different from $870? Explain your conclusion

Reference no: EM13767849

Questions Cloud

Which portfolio has the lowest risk : Suppose there are three securities (A, B, and C) to choose from to create your portfolio. Next year the economy will be in an expansion, normal, or recession state with probabilities 0.46, 0.36, and 0.18, respectively. The returns (%) on the securiti..
What is the total manufactoring cost : The job cost sheet for Job shows that $23,264 in direct materials has been used on the job and that $10,200 in direct labor cost has been incurred. A total of 1,300 units were produced in Job 313. What is the total manufactoring cost?
Largest market capitalization stocks traded : The FTSE 100 is an index of the 100 largest market capitalization stocks traded on the London Stock Exchange. You think that 100 stocks are too much to keep up with, so you want to drop that number to 75. By doing this, what is the percentage drop in..
Security market line sml reward-to-risk : Stock Y has a beta of .9 and an expected return of 11.2 percent. Stock Z has a beta of 0.5 and an expected return of 7.2 percent. If the risk-free rate is 5.0 percent and the market risk premium is 6.0 percent, the reward-to-risk ratios for stocks Y ..
He company claims for the past few years the average : You are considering investing in a company. The company claims for the past few years the average monthly return on such an investment has been $870 with a standard deviation of $50. You sample 30 investors and determine the sample average return to ..
Differentiate ethnocentricity, polycentricity and geocentric : Differentiate ethnocentricity, polycentricity and geocentricity, and give examples of companies from your own country that you believe fit into each category.
Reasonable estimate of the market risk-premium in percentage : Suppose CAPM works, and you know that the expected returns on Google and IBM are estimated to be 15.50% and 12.25%, respectively. You have just calculated extremely reliable estimates of the betas of Google and IBM to be 1.39 and 0.87, respectively. ..
Write a proper citation of the article luck by mark twain : Write a proper citation of the article Luck by Mark Twain. Complete the parallel structure handout that was distributed.
What are the job functions of a parole officer : What are the job functions of a parole officer? What are the pros and cons of the position? What are their recommendations for entering the field

Reviews

Write a Review

Applied Statistics Questions & Answers

  Problem 1a researcher is interested in evaluating whether

problem 1a researcher is interested in evaluating whether there is a relationship between number of packs of cigarettes

  Age category insurance health insurance

Age Category Insurance Health Insurance

  Calculate the mean and standard deviation

Calculate the mean and standard deviation and Based on these statistics, describe how these anthropometric data compare to the US male and Chinese female populations.

  Statistics from cornell''s northeast regional climate center

Statistics from Cornell's Northeast Regional Climate Center indicate that Ithaca, NY, gets an average of 35.4" of rain each year with a standard deviation of 4.2". Assume the data is normally distributed.

  Know the proper format for a null hypothesis

Know the proper format for a Null Hypothesis. Know the proper format for an Alternative Hypothesis. Know how to state a Null and Alternative Hypothesis for business situations. Know the definition of a Type I error. Know the definition of a Typ..

  Examine the uncertainty for five different investment projec

Work up a simulation model to examine the uncertainty for five different investment projects.  p1 = 0.5, p2 = 0.35, p3 = 0.65, p4 = 0.58, p5 = 0.45.  The outcomes of the projects should be viewed as independent since the projects are run by di..

  Perform a factor analysis on the variables

Perform a factor analysis on the three variables shown in question 2 above. What do conclude about the factors?  Perform another factor analysis that includes the new variable, change in external events.  What do you conclude?

  Create a separate histogram for each day

Festival Histogram: Beginning with in the text on spotting outliers, correct the type in the data as directed - create a separate histogram for each day, Day1, Day2, and Day3, using the hygiene variable for all three days. Include the normal curve

  Decision alternative good economy poor economy

Mickey Lawson is considering investing some money that he inherited. The following payoff table gives the profits that would be realized during the next year for each of three investment alternatives Mickey is considering:

  The finer diner are normally distributed with an average pri

Format your data in a Microsoft® Excel® spreadsheet. Need some advice and guidance on setting this up in excel. Currently working on trying to figure out the formulas and how to arrange the data. Also looking at how to set up excel to calculate the i..

  Sample of customer order totals with an average

1) A random sample of customer order totals with an average of $78.25 and a population standard deviation of $22.50. Calculate a 90% confidence interval fro the mean, given a sample size of 75 orders

  Comparison of probabilities in your explanation

How many free premium channels should the research director recommend for inclusion in the 3-For-All service ?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd