Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Physics Expert

A securities analyst wants to estimate the average percentage of institutional holding of all publicly traded stocks in the United States. The analyst believes that stocks traded on the three major exchanges have different characteristics and therefore decides to use stratified random sampling. The three strata are the New York Stock Exchange (NYSE), the American Exchange (AMEX), and the Over the Counter (OTC) exchange. The weights of the three strata, as measured by the number of stocks listed in each exchange, divided by the total number of stocks, are NYSE, 0.44; AMEX, 0.15; OTC, 0.41. A total random sample of 200 stocks is selected, with proportional allocation. The average percentage of institutional holdings of the subsample selected from the issues of the NYSE is 46%, and the standard deviation is 8%. The corresponding results for the AMEX are 9% average institutional holdings and a standard deviation of 4%, and the corresponding results for the OTC stocks are 29% average institutional holdings and a standard deviation of 16%.

a. Give a stratified estimate of the mean percentage of institutional holdings per stock.

b. Give the standard error of the estimate in a.

c. Give a 95% confidence interval for the mean percentage of institutional holdings.

d. Explain the advantages of using stratified random sampling in this case. Compare with simple random sampling.

Physics, Academics

  • Category:- Physics
  • Reference No.:- M92180659

Have any Question?


Related Questions in Physics

Question our suns 5800 k surface temperature gives a peak

Question: Our sun's 5800 K surface temperature gives a peak wavelength in the middle of the visible spectrum. What is the minimum surface temperature for a star whose emission peaks at some wavelength less than 400 nm? t ...

Question in a semiclassical model of the hydrogen atom the

Question: In a semiclassical model of the hydrogen atom, the electron orbitsthe proton at a distance of 0.053 nm. What is the electric potential of the proton atthe position of the electron? What is the electron's potent ...

Question a standard biological microscope is required to

Question: A standard biological microscope is required to have a magnification of 200Ã-. When paired with a 10Ã- eyepiece, what power objective is needed to get this magnification? Part A: Assume that the length of the t ...

Question planets beyond the solar system on october 15 2001

Question: Planets beyond the solar system. On October 15, 2001, a planet was discovered orbiting around the star HD68988. Its orbital distance was measured to be 10.5 million kilometers from the center of the star, and i ...

Quesiton a rock is tossed straight up with a velocity of

Quesiton: A rock is tossed straight up with a velocity of 20m/s When it returns, it falls into a hole 10 m deep. What is the rock's velocity as it hits the bottom of thehole? How long is the rock in the air, from the ins ...

Question the position of a mass oscillating on a spring is

Question: The position of a mass oscillating on a spring is given byx = (6.8 cm) cos[2t/(0.91 s)]. (a) What is the frequency of this motion? (b) When is the mass first at the position x =-6.8cm? The response must be type ...

Question part a suppose that you want to construct a line

Question: Part A: Suppose that you want to construct a line with slope m=3 that passes through the point (2,1). You would begin by setting up the equation y = 3x + b. If you plug in the coordinates for any point on that ...

Question a tank whose bottom is a mirror is filled with

Question: A tank whose bottom is a mirror is filled with water to a depth of 19.4 . A small fish floats motionless 7.10 under the surface of the water. Part A) What is the apparent depth of the fish when viewed at normal ...

Question an object of mass m is dropped from height h above

Question: An object of mass m is dropped from height h above a planet of mass M and radius R. Find an expression for the object's speed as it hits the ground. Express your answer in terms of the variables m,M,h,R and app ...

A high-energy muon was produced in the upper atmosphere 80

A high-energy muon was produced in the upper atmosphere 80 km above the sea level. 380 μs later, a detector at the sea level detected it. a. How long was the journey according to this muon? b. What was the proper time fo ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As