SOLUTION: During the past forty years, the monthly rate of return of stocks has been approximately normally
distributed, with µ = 0.75 percent and σ = 4.2 percent, according to data ob
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Question 1101231: During the past forty years, the monthly rate of return of stocks has been approximately normally
distributed, with µ = 0.75 percent and σ = 4.2 percent, according to data obtained from
Yahoo!Finance.
(i) What is the probability that a randomly selected month has a rate of return of at least 1
percent?
(ii) What is the probability that a randomly selected month has a rate of return less than 2 percent?
(iii) What proportion of months have a positive rate of return?
(b) According to the Energy Information Administration, 42.1% of households in the United States
owned a personal computer in 1998. An economist wants to discover whether this percentage has
changed significantly since then. She randomly selects 320 households throughout the United States
and finds that 154 of them own a personal computer. Is there sufficient evidence to conclude the
percentage of households that own a personal computer is significantly different from the percentage
in 1998, at the α = 0.01 level of significanc
Answer by Nosimilo(1) (Show Source): You can put this solution on YOUR website!
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