Answered: Based on a previous study, it is known…

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter13: Probability And Calculus

Section13.2: Expected Value And Variance Of Continuous Random Variables

Problem 10E

See similar textbooks

Related questions

Concept explainers

Question

100%

Based on a previous study, it is known that the dividend payout ratio of an industry resembles a normal distribution with a standard deviation of 2.4%. An investment manager collects data from 81 companies in an industry and gets the average dividend payout ratio of 81 companies is 11.8%. If the investment manager wants to establish a 95% confidence interval for the average dividend payout ratio of the population in the industry, what estimate will be obtained?

a) 11.36% - 12.24%

b) 11.28% - 12.32%

c) 11.8% - 12.32%

d) 11.36% - 12.8%

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Point Estimation, Limit Theorems, Approximations, and Bounds$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.

Recommended textbooks for you

Calculus For The Life Sciences

Calculus

ISBN:

9780321964038

Author:

GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:

Pearson Addison Wesley,