Which of the following is/ are true?
Answer(s): A
Adding a constant to each value in a sample increases the mean by the same constant. III is incorrect. As the number of observations increases, it is the expected difference between the sample mean and the population mean that decreases.
An automatic machine inserts mixed vegetables into a plastic bag. Past experience revealed that some packages were underweight and some were overweight, but most of them had satisfactory weight.Weight % of TotalUnderweight 2.5Satisfactory 90.0Overweight 7.5Three packages are selected from the food processing line. What is the probability of selecting and finding that all three of them are underweight?
Answer(s): D
P(all three underweight) = 0.025*0.025*0.025 = 0.0000156.
Jack wants to retire a millionaire. If he is 30 years old today and already has $30,000 in the bank, what monthly payment would he need to make beginning one month from today and continuing until he retires on his 65th birthday, if the money will earn 8% per year, compounded monthly?
The total number of deposits will be 420 (35 years x 12 months/year). On the BAII Plus, press 420 N, 8 divide 12 = I/Y, 30000 PV, 1000000 +/- FV, CPT PMT. On the HP12C, press 420 n, 8 ENTER 12 divide i, 30000 PV, 1000000 CHS FV, PMT. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.
A national manufacturer of unattached garages discovered that the distribution of the lengths of time it takes two construction workers to erect the Red Barn model is approximately normally distributed with a mean of 32 hours and a standard deviation of 2 hours. What percent of the garages take between 32 and 34 hours to erect?
z = (x-u)/sigma. z1 = 32 - 32/2 = 0 and z2 = 34 - 32/2 = 1. From the z tables, z = 0 and z = 1 are 0 and 0.3413 respectively. Therefore, the area under the curve is 0.3413.
An investor faces the following investment scenarios:Scenario Probability ReturnBull market 60% 30%Neutral market 30% 7%Market crash 10% -25%The investor's expected rate of return is ________.
Answer(s): B
The expected return equals 0.6 * 30% + 0.3 * 7% + 0.1 * (-25%) = 17.6%.
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