Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Statistics and Probability Expert

describe probability using normal distribution.

As-per to Investment Digest (‘Diversification and the Risk or Reward Relationship', Winter 1994, 1-3) the mean of the annual return for common stocks from 1926 to 1992 was 15.4%, as well as the standard deviation of the annual return was 24.5%. During the similar 67-year time span the mean of the annual return for long-term government bonds was 5.5% as well as the standard deviation was 6.0%. The article entitlements that the distributions of annual returns for both common stocks also long-term government bonds are bell-shaped and approximately symmetric. Presume that these distributions are distributed as normal random variables with the means as well as standard deviations given previously.

1. What the probability that the return for common stocks will be greater than 0%.

2. What the probability that the return for common stocks will be less than 20%.

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M920296

Have any Question? 


Related Questions in Statistics and Probability

Suppose that the probability that a new medication will

Suppose that the probability that a new medication will cause a bad side effect is 0.03. If this medication is given to 150 people, what is the probability that exactly three of them will experience a bad side effect? Pl ...

Question a survey found that an american family generates

Question: A survey found that an American Family generates an average of 17.2 lb of glass garbage each year. Assume that the standard deviation of the distribution is 2.5 pounds. If a sample of 55 families is randomly se ...

The university is attempting to set its staffing plan for

The University is attempting to set its staffing plan for the next several year, and it wants to determine if the distribution of students among various graduate majors has changed from the historical averages which were ...

In a pulse rate research a simple random sample of 120 men

In a pulse rate research, a simple random sample of 120 men results in a mean of 80 beats per minute, and a standard deviation of 11 beats per minute. Based on the sample results, the researcher concludes that the pulse ...

A study found that consumers spend an average of 24 per

A study found that consumers spend an average of $24 per week in cash without being aware of where it goes. Assume that the amount of cash spent without being aware of where it goes is normally distributed and that the s ...

Assume a normal distribution for n 300 how many cases

Assume a normal distribution for N = 300. How many cases would one expect to find between +1 and -1 standard deviations around the mean? 102 285 150 204

Christine has always been weak in mathematics based on her

Christine has always been weak in mathematics. Based on her performance prior to the final exam in Calculus, there is a 45% chance that she will fail the course if she does not have a tutor. With a tutor, her probability ...

1 what three rules govern the construction of a grouped

1. What three rules govern the construction of a grouped frequency distribution? 2. What is the difference between a histogram and a bar graph? 3. Distinguish among the median, mode, and mean.

Imagine that your town or city has increased its nighttime

Imagine that your town or city has increased its nighttime police patrols to reduce crime. Design two quasi-experiments to determine whether this intervention has been effective, one that uses some variation of a nonequi ...

Using the standard normal distribution tables what is the

Using the standard normal distribution tables, what is the area under the standard normal curve corresponding to Z

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro