Fundamentals of Statistics (5th Edition)

5th Edition

ISBN: 9780134508306

Author: Michael Sullivan III

Publisher: PEARSON

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Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear re…

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.

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Textbook Question

Chapter B.2, Problem 16AYU

Investment Risk Investors not only desire a high return on their money, but they would also like the rate of return to be stable from year to year. An investment manager invests with the goal of reducing volatility (year-to-year fluctuations in the rate of return). The following data represent the rate of return (in percent) for his mutual fund for the past 12 years.

Chapter B.2, Problem 16AYU, Investment Risk Investors not only desire a high return on their money, but they would also like the

(a) Verify that the data are normally distributed by constructing a normal probability plot.
(b) Determine the sample standard deviation.
(c) Construct a 95% confidence interval for the population standard deviation of the rate of return.
(d) The investment manager wants to have a population standard deviation for the rate of return below 6%. Does the confidence interval validate this desire?

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.

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Chapter B.2, Problem 15AYU

Chapter B.2, Problem 17AYU

Chapter B.2 Solutions

Fundamentals of Statistics (5th Edition)

Ch. B.2 - True or False: The chi-square distribution is...Ch. B.2 - Prob. 2AYU Ch. B.2 - Prob. 3AYU Ch. B.2 - Prob. 4AYU Ch. B.2 - Prob. 5AYU Ch. B.2 - Prob. 6AYU Ch. B.2 - In Problems 58, find the critical values 1/22 and...Ch. B.2 - Prob. 8AYU Ch. B.2 - Prob. 9AYU Ch. B.2 - A simple random sample of size n is drawn from a...

Ch. B.2 - NW 11. pH of Rain The following data represent the...Ch. B.2 - Travel Taxes Travelers pay taxes for flying, car...Ch. B.2 - Crash Test Results The following data represent...Ch. B.2 - Crawling Babies The following data represent the...Ch. B.2 - Peanuts A jar of peanuts is supposed to have 16...Ch. B.2 - Investment Risk Investors not only desire a high...Ch. B.2 - Critical Values Sir R. A. Fisher, a famous...

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Population Genetics In the study of population genetics, an important measure of inbreeding is the proportion of homozygous genotypesthat is, instances in which the two alleles carried at a particular site on an individuals chromosomes are both the same. For population in which blood-related individual mate, them is a higher than expected frequency of homozygous individuals. Examples of such populations include endangered or rare species, selectively bred breeds, and isolated populations. in general. the frequency of homozygous children from mating of blood-related parents is greater than that for children from unrelated parents Measured over a large number of generations, the proportion of heterozygous genotypesthat is, nonhomozygous genotypeschanges by a constant factor 1 from generation to generation. The factor 1 is a number between 0 and 1. If 1=0.75, for example then the proportion of heterozygous individuals in the population decreases by 25 in each generation In this case, after 10 generations, the proportion of heterozygous individuals in the population decreases by 94.37, since 0.7510=0.0563, or 5.63. In other words, 94.37 of the population is homozygous. For specific types of matings, the proportion of heterozygous genotypes can be related to that of previous generations and is found from an equation. For mating between siblings 1 can be determined as the largest value of for which 2=12+14. This equation comes from carefully accounting for the genotypes for the present generation the 2 term in terms of those previous two generations represented by for the parents generation and by the constant term of the grandparents generation. a Find both solutions to the quadratic equation above and identify which is 1 use a horizontal span of 1 to 1 in this exercise and the following exercise. b After 5 generations, what proportion of the population will be homozygous? c After 20 generations, what proportion of the population will be homozygous?

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Solution Summary: The author explains how an investment manager invests with the aim of reducing the year-to-year fluctuations in the rate of return, known as volatility.

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Chapter B.2 Solutions