Solution) Although the first quarter of 2002 was quite dismal on Wall Street, mutual funds investing in gold c


Question: Although the first quarter of 2002 was quite dismal on Wall Street, mutual funds investing in gold companies rose an average of 35.2% (Stock Funds Perk Up in the First Quarter (www.usatoday.com). Assume that the distribution of returns in the first quarter of 2002 for mutual funds specializing in gold companies is fairly symmetrical with a mean of 35.2% and a standard deviation of 20%. If random samples of 16 gold stock funds were selected:

(a) Find the probability that the sample mean return is less than 25%

(b) Find the probability that the sample mean return is greater than 40%

(c) Find the probability that the sample mean return is between 25% and 45%

(d) 80% of the sample mean returns are between what two values symmetrically distributed around the mean?

(e) 90% of the sample mean returns are between what two values symmetrically distributed around the mean?

(f) 95% of the sample mean returns are between what two values symmetrically distributed around the mean?

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