The weekly mean income of a group of executives is $1,000 and the standard deviation of this group is $100. The distribution is normal. What percent of the executive have an income of $925 or less?
Answer(s): A
z = (x-u)/sigma = 925 - 1000/100 = -0.75. From z-table z = 0.75 is 0.2734. So 1.0 - 0.7734 = 0.2266.
A stock's return has a mean of 6% and a coefficient of variation of 2. Its variance equals
Coefficient of variation = standard deviation/mean. Therefore, standard deviation = 2*6 = 12. Variance = 12^2 =
The coefficient of determination measures:
Answer(s): D
The coefficient of determination, also known as the R-square of the regression, measures the amount of variance of the dependent variable explained by the independent variable.
Which of the following statements regarding the coefficient of correlation is true?
All of these answers are properties of the coefficient of correlation. Make sure you know the formula for the coefficient of correlation.
What is the chart called when the paired date (the dependent and independent variables) are plotted?
Answer(s): E
This chart is the scatter diagram.
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