TABLE OF CONTENTS CONCEPTS OF RISK AND UNCERTAINTY 1 Definition Economic Risk Economic risk is the chance of loss because all possible outcomes and their associated probabilities are unknown.Actions taken in such a decision environment are purely speculative‚ such as the buy and sell decisions made by speculators in commodity‚ futures and option markets. All decision makers are equally likely to profit as well as to lose‚ luck is the sole determinant of success or failure. 2 Definition of
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a multi-meter was used to measure the resistance in a pack of ten resistors. Each member measured the resistors twice to allow for more precise statistical analysis. After all measurements were recorded‚ statistical analysis such as mean‚ standard deviation‚ and true mean range with 90%‚ 95%‚ and 99% confidence intervals were used to obtain the results. Once calculations were made‚ it was determined that there was error in this laboratory due to the environment and to human error‚ however all
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of fast foods are students’ favorite? 2.0 Gender Figure 1 Gender Frequency Percent Male 22 48 Female 28 52 Total 50 100 Mean 25 Median 25 Mode #N/A Standard deviation 4.24 Standard Deviation= =4.24 Figure 1 shows the gender of sample at SEGI students. There are 22 male students and 28 female students in this sample. 3.0 Age Figure 2 Age Male Female Frequency
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Complete Parts A‚ B‚ and C below. Part A 1. Why is a z score a standard score? Why can standard scores be used to compare scores from different distributions? 2. For the following set of scores‚ fill in the cells. The mean is 74.13 and the standard deviation is 9.98. Raw score Z score 68.0 ? ? –1.6 82.0 ? ? 1.8 69.0 ? ? –0.5 85.0 ? ? 1.7 72.0 ? 3. Questions 3a through 3d are based on a distribution of scores with and the standard deviation = 6.38. Draw a small picture to help you see what is required
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P1-2010-2011-Spring Bus531 Standard Normaal Probability Problems 1- A university reported admission statistics for 3339 students who were admitted for freshmen for the fall semester of 1998. Of these students‚ 1590 had taken the Scholastic Aptitude Test (SAT). Assume the SAT verbal scores were normally distributed with a mean of 530 and a standard deviation of 70. a – What percentage of students were admitted with SAT verbal scores between 500 and 600? b - What percentage of students were
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Recession 0.1 5.5% -27.0% 27% 6% -17% 0% Below Average 0.2 5.5% -7% 13% -14% -3% Average 0.4 5.5% 15% 0 3% 10% 7.50% Above Average 0.2 5.5% 30% -11% 41% 25% Boom 0.1 5.5% 45% -21% 26% 38% 12% r(hat) - expected return 1.00% 9.80% 10.50% σ (std deviation) 0.0% 13.20% 18.80% 15.20% 3.40% CV 13.20% 1.90% 1.4% 0.50% beta -0.87% 88.00% CDIB’s economic forecasting staff has developed probability estimates for the state of the economy; and its security analysts have developed a sophisticated
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2 (b). µa = 0.12 and σa = 0.024; 2 (c). µa = 0.12 and σa = 0.288; (d). µa = 0.12 and σa = 0.024; (e). None of the above. 2. Which of the following statements is correct? (a). Expected utility of wealth is constant on the MVS. (b). In the standard deviation and expected return space‚ the mean-variance combination line is convex while the indifference curve is concave. (c). The variance of portfolio with equal proportions of n assets tends to zero as n → ∞. (d). For portfolios of many assets‚ it
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2/8 (Friday) Standard Deviation cont’d Example: Amount of money earned by new immigrants Sample: 12‚ 15‚ 16‚ 20‚ 25‚ 36‚ 40 Step 1: Find the mean * x̄=164/7 * mean is 23.4 Step 2: Find how much each observation deviates from the mean * 12 - 23.4 = -11.4 * 15 – 23.4 = -8.4 * 16 – 23.4 = -7.4 * 20 – 23.4 = -3.4 * 25 – 23.4 = 1.6 * 36 – 23.4 = 12.6 * 40 – 23.4 = 16.6 * Note: all observations below mean will be negative‚ all above will be positive Step
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1880. What are the advantages and disadvantages in using these data to help estimate the expected rate of return on U.S. stocks over the coming year? If we assume that the distribution of returns remains reasonably stable (same expectation and standard
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COFFEE USE - HEART RATE RESEARCH PROJECT COFFEE USE - HEART RATE Part 1 The study used for this project is a nursing and health sciences study. One particular healthcare facility is trying to determine if it is a good idea to provide coffee in the waiting room for the patients. There are several other facilities that serve tea‚ coffee‚ and water‚ so this health care facility wants to determine if there is sufficient evidence to show that coffee increases the patient heart rates. The question
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